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Overdue Economic Reforms for India
India now has a critical opportunity to accelerate long-overdue economic reforms in the wake of Trump’s tariffs. These disruptive tariffs have unsettled global trade, leaving uncertainty in their wake. While their success remains debatable, the message is clear: ‘Reform or Perish’.
India’s economic reforms—often centred around liberalization and privatization—must include streamlining labor laws, reforming public sector banks, improving the ease of doing business, and addressing regional disparities. These measures are crucial to ensuring sustained economic growth and global competitiveness.
However, implementing these reforms requires parliamentary approval, where opposition parties with divergent agendas are unlikely to reach a consensus. Yet, the fear and uncertainty created by Trump’s trade policies may reduce resistance to change. Just as the government pushed through Waqf Board reforms, it must now demonstrate the same political will to drive an ambitious economic reform package forward.
There is widespread concern that Trump’s tariffs will negatively impact India’s economy. If GDP growth slows by even a few percentage points, it could be perceived as economic mismanagement—jeopardizing electoral prospects. India stands at a crossroads much like in 1991, when Dr. Manmohan Singh’s economic reforms set the country on a trajectory of progress. The lesson is clear: push for reforms now, or risk losing power sooner rather than later.
The economic liberalization of 1991 undeniably propelled India forward. Similarly, bold reforms in response to today’s trade shocks could chart an even stronger path for India’s future economic success. If state ownership is reduced then inherent laziness in the public sector will be a thing of the past. Corruption will be reduce and accountability, responsibility and discipline will become norm of the day……. Cheers.
Further reading at:
https://unacademy.com/content/upsc/...onomic-reforms-in-india/#:~:text=Deregulation of Industrial Sector:,Indian and foreign private banks
India now has a critical opportunity to accelerate long-overdue economic reforms in the wake of Trump’s tariffs. These disruptive tariffs have unsettled global trade, leaving uncertainty in their wake. While their success remains debatable, the message is clear: ‘Reform or Perish’.
India’s economic reforms—often centred around liberalization and privatization—must include streamlining labor laws, reforming public sector banks, improving the ease of doing business, and addressing regional disparities. These measures are crucial to ensuring sustained economic growth and global competitiveness.
However, implementing these reforms requires parliamentary approval, where opposition parties with divergent agendas are unlikely to reach a consensus. Yet, the fear and uncertainty created by Trump’s trade policies may reduce resistance to change. Just as the government pushed through Waqf Board reforms, it must now demonstrate the same political will to drive an ambitious economic reform package forward.
There is widespread concern that Trump’s tariffs will negatively impact India’s economy. If GDP growth slows by even a few percentage points, it could be perceived as economic mismanagement—jeopardizing electoral prospects. India stands at a crossroads much like in 1991, when Dr. Manmohan Singh’s economic reforms set the country on a trajectory of progress. The lesson is clear: push for reforms now, or risk losing power sooner rather than later.
The economic liberalization of 1991 undeniably propelled India forward. Similarly, bold reforms in response to today’s trade shocks could chart an even stronger path for India’s future economic success. If state ownership is reduced then inherent laziness in the public sector will be a thing of the past. Corruption will be reduce and accountability, responsibility and discipline will become norm of the day……. Cheers.
Further reading at:
https://unacademy.com/content/upsc/...onomic-reforms-in-india/#:~:text=Deregulation of Industrial Sector:,Indian and foreign private banks