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Disappointed that a former Finance Minister would write an article to criticize a leading economic thinker and a distinguished academic. The professor only pointed out the truth about economic reforms - which were uncomfortable to the said former FM for various reasons.
Fact is that there were no significant real reforms that were undertaken post-2009. None. The reason? Lack of political will towards economic reforms - or the lack of political capital. Either way, India lived through years of policy paralysis even as out competitors reformed.
On the question of Dr MMS being a reformer - yes, he was a reformer. But here are some facts:
Rupee’s devaluation in early 1990s done when Dr MMS was the Finance Minister. He did not do it explicitly but did so by stealth.
Rupee’s devaluation in early 1990s done when Dr MMS was the Finance Minister. He did not do it explicitly but did so by stealth.
It was done by instructing the RBI to undertake a new intervention rate which was repeated after a few days thereby resulting in rupee’s devaluation.
"While the 1991 reforms were indeed big bang, a lot of them — industrial licensing, trade policy, value of exchange rates, etc. — were ‘simpler’ in the sense that they required the Centre to take decisions." A lot of it were to do with executive decisions https://economictimes.indiatimes.com/news/economy/policy/view-when-you-oughta-go-you-gotta-go/articleshow/78481272.cms
The tougher reforms such as RERA, IBC, GST, APMC, Land, Labour, Medical Bill - all require a different kind of political capital to build a consensus not just at the central level but also with states. Most of these hard, deep structural reforms were pending since 1991.
These reforms have happened only post 2014 - and that is what makes PM @narendramodi sir as India's foremost reformer. A lot of these are tough - require enormous political capital and a bold conviction towards reforms. It is this risk-taking appetite that was critical.
As far as Dr MMS is concerned, while he is a reformer, I've often wondered why he taught a planned economy all his life and suddenly looked at market economy as the solution for our problems - yet as PM, did so little to further the transition initiated by him as the FM in 1991.
A joint article on this with Vivek Singh that talks about reforms by conviction versus reforms by compulsion. Some of you may find it interesting. https://economictimes.indiatimes.com/news/economy/policy/view-when-you-oughta-go-you-gotta-go/articleshow/78481272.cms
