6.14
aimed at inclusion (commencing via the third Union Budget 2017-18 described it). Some of
generation of economic reforms). This created a such reforms have been:
kind of disillusionment about the prospects of (a) Inflation targeting and setting up
reforms and failed the governments to muster the Monetary Policy Committee by
enough public support in favour of reforms. amending the RBI Act, 1934;
Unlike India, several other countries (such (b) Restarting of the ‘strategic disinvestment’
as Brazil, Argentina, South Africa, etc.) also went of the PSUs;
for the stop-and-go kind of reforms. In such (c) Demonetisation of the high denomination
reforms, the governments first decide the sector currency notes (aimed at checking
where reform is needed—then they pin-pointed corruption, black money, tax evasion,
the prerequisites (which will create a conducive fake currency and terrorism);
atmosphere for reforms to take place), and finally
(d) Enactment of the new Benami Law
both set of the reforms are activated simultaneously.
(aimed at checking black money);
In their cases, economic results from reforms were
on the expected lines. Though these nations took (e) Bankruptcy Law (aimed at promoting the
high risks on the socio-political front, in their ‘ease of doing business’); and
case, in medium-term itself, the governments were (f) Enactment of the Aadhar Act (aimed at
able to mobilise enough public support in favour rationalising and weeding out corruption
of reforms (which encouraged the governments in the present subsidy regime); etc.
to go for further reforms). Such reforms do not The latest volume (vol. 1) of the Economic
look possible in the case of India—this is why last Survey 2017-18 has rightly advised the
few volumes of the Economic Survey (2015-16, government to push in favour of largescale
2016-17 and 2017-18) advised in favour of an incremental reforms in the economy—citing the
incremental approach to reforms. need of judicial reforms which hinder the natural
Presently, we see the Government of India functioning of the economic system and prevents
pushing for ‘transformational reforms’ (as the it from realising its optimum potential.