The next five reforms India needs

They can help ensure that India remains on a high-growth trajectory over the next two decades

- AMITABH KANT

For the first half of this year, India has grown at 8 percent, defying most expectations. Despite volatility in global trade and tariffs, India’s exports grew by nearly 20 per cent in November. With reforms in the goods and services tax, the removal of several quality control orders, the reports of committees on deregulation, and the crucial implementation of the labour codes, these structural reforms raise India’s potential growth rate.

Currently, Parliament is debating important bills on private participation in nuclear energy and 100 per cent foreign direct investment in the insurance sector.

Clearly, the reform agenda is not running out of steam. We must keep this reform momentum going. We must not be satisfied with 8 per cent growth rates for successive quarters — we need them for the next two decades.

History shows that only a handful of economies, such as Japan, South Korea, Singapore and China have achieved such long, uninterrupted growth cycles. India now has the macro-stability, digital backbone and institutional capacity to attempt this leap. We must raise productivity, lower costs, deepen markets and strengthen our cities.

These are the five reforms that India needs: