MBA Aspirants are expected to know and understand the current economic conditions and downwards of economy. This general awareness will help you in WAT/Essay/GD and PI.
Read: What major reforms can stimulate Indian Economy?
Reforms in all spheres of human endeavor are a continuous process. One reform becomes a stepping stone for another one. Whether it’s an emerging nation or a developed one, all require reforms at one point or the other, and India is no exception.
All required reforms can be classified depending on the area it belongs to, examples being political, economical, social, technological, environmental and legal reforms. These all can be called through an acronym PESTEL reforms.
Politically, Second Administrative reforms commission has already highlighted the key areas where reforms could be done. Some of them are addressing endemic corruption via specific oversight legislations like Lokpal and reducing excessive bureaucracy by streamlining decision making through single-window clearances.
Another area of reform within the politico- administration is setting up of strong regulators across many sectors like energy, coal, real estate with appropriate penal powers.
On the economic front, taxation reforms like (Goods and Services Tax) GST and Direct Taxes Code (DTC) implementation are critical. Practical timelines should be announced and adhered to by the next government. On the subsidy front, capping subsidies on fuels (LPG, diesel and petrol) are essential and market-linked pricing for fertilizer should be done.
Another issue of contention that has cropped up recently is the auction of natural resources. Clear and transparent policies of auction of natural resources such as coal, minerals and spectrum need to be put in place. This matter is also been looked upon by the Supreme court of India.
Under the ambit of social reforms, spreading the direct cash transfer system across India to cover various subsidies and support systems is very essential for proper implementation of government’s social schemes. The process of issuing UIDAI-Aadhar card has been very slow and much more speed is needed to cover the entire nation.
On technological front, India needs to engage more with the other countries for advancement. For technological up-gradation in industry in general and manufacturing in particular, India has to increase the FDI cap. FDI not only bring investment, but also skills and technology through various ways like licensing.
Ecology v/s economy debate has been going on for long in India. Key reforms for protecting the environment are the need of the hour. The reform Agenda for India's Environmental Regulators like state pollution control boards is to do away with the current problems like staff shortage, finances, skilled human resources, etc. Also, introducing civil administrative penalties imposable directly by SPCBs for certain categories of violations not leading to a severe immediate environmental impact would provide a flexible, effective enforcement tool.
They say, justice delayed is justice denied. In order to provide speedy and quality justice accessible to the ordinary citizens, there is urgent need to reform our judicial system. Perhaps the most important practical reform would be constitution of rural courts for speedy justice. An extremely low judge to population ratio in India only contributes further to the already high incidence of pending cases, making delays in justice a regular occurrence.
Moreover, as e-government initiatives continue to transform the nature of India's bureaucracy and enhance the quality of government services, there is a mood of great optimism that information and communication technology (ICT) will also come to play a central role in judicial reform efforts.
India is passing through an incredibly challenging period in its economic advance. If vital indicators are any sign of the health of the economy, India is ailing. India needs to move beyond the bitter partisanship of party politics to evolve an agenda that would serve the best interests of its 1.2 billion people.