As India's economic growth slows down, the Narendra Modi government must speed up the pace of reforms to boost the economy, US-India policy expert Richard Rossow said.
As India’s economic growth slows down, the Narendra Modi government must speed up the pace of reforms to boost the economy, US-India policy expert Richard Rossow said. The government has only accomplished one of the 30 big reforms on his list so far in the nine months of its second term, Richard Rossow, India expert at the Center of Strategic and International Studies (CSIS), a Washington DC-based think-tank, said. During its first term, the government had accomplished six of the 30 major reforms, being tracked by CSIS, in the first year. “With a slowing economy, no time to waste,” Richard Rossow tweeted. So far in the second term, the only reform completed is reduction of the corporate tax rate from 30 percent to 25 percent, according to the CSIS scorecard.
“We are headed toward the end of the first year of the Modi government’s second term, and the pace of reform is noticeably slower. As of mid-January, the government has implemented only one highlighted reform — the cut to corporate tax rates announced last year. Three other reforms have seen positive steps; all three are related to bankruptcy/resolution processes,” Richard Rossow said in a note. Some of the major reforms accomplished by the government from 2014-2019 include GST introduction, diesel pricing deregulation, fully opening coal mining sector to private or foreign investment, among others.
CSIS reforms scorecard covers 30 significant reforms that will trigger business growth and job creation in India. As of December 2019, one reform stands completed, and three reforms remain ‘partially done’. Meanwhile, the economy is undergoing a slowdown for some time now. The economy grew at just 4.5 per cent in Q2FY20. The GDP is expected to grow at 5 per cent in the ongoing fiscal on account of both global and domestic factors. Even the IMF and RBI have lowered the growth projections for the Indian economy.