Deregulation is a must but don't fall into the one-size-fits-all trap

Four leading Indian states are serving as a test zone for reforms but others need space for policies adapted to their own needs

- PRADEEP S. MEHTA & TASMITA SENGUPTA

(iSTOCKPHOTO)

In 1991, India embarked on major economic policy reforms in the face of a financial crisis. Today, tariff bombs lobbed by the US administration under Donald Trump have led to a chorus demanding reforms so that Indian businesses can cope with trade adversity. Prime Minister Narendra Modi spoke about launching an arsenal of reforms, which is what we need if we are to pull up our socks and prosper.

A 100-day roadmap for next-generation reforms was also announced, aimed at strengthening India’s regulatory framework and boosting investor confidence: an initiative that is both timely and welcome. Central to this vision is a pilot rollout model inspired by the ‘flying geese’ model of growth, with Maharashtra, Gujarat, Tamil Nadu, Delhi and Karnataka serving as testing grounds. In addition, a Deregulation Task Force has been constituted to drive state-level initiatives. This is complemented by two high-powered groups of secretaries, technocrats and economists that will focus on advancing Viksit Bharat goals and non-financial sector regulatory reforms.