Those Seeking Reforms in India Probably Require a Reality Check

Calls for economic reforms fail to recognize the political conditions that must be met for changes to go through and succeed

- RAJRISHI SINGHAL

The global turmoil set off by the flapping of tariff wings in the White House has got many wise men offering sage advice on how to navigate the thorny path ahead. India's predicament, of finding ways around the prickliness of its strategic partner and key trading counterpart, also finds myriad policy experts providing gratuitous advice. Amid this welter of unsolicited advice, articulated mostly through oped columns, one common suggestion is to use the current global policy flux to carry out long-pending economic reforms. On offer, almost always, is a dog-eared list of policy initiatives.

Well, here is some news for all those brandishing the old reforms placard: keep hoping.

It is not that these reforms are undesirable, or that the package is inappropriate for India. On the contrary, some of the reforms are absolutely necessary. What seems to be missing are the conditions necessary to get reforms off the ground. The history of economic reforms in India points to the political economy's critical role; it is futile to think of implementing reforms unmoored from political realities. In fact, nationalist political realities forced the government in 2017 to reverse years of calibrated opening and re-introduce trade protectionism, through both tariff and non-tariff contrivances. Take a look at how financial-sector reforms are implemented in India.