The next phase of economic reforms
The Narendra Modi government now needs to focus on the economic policy reforms India needs over the next decade
The Narendra Modi government has done well to push ahead with key economic policy reforms that had been left on the table by the previous regime. The legal decks have been cleared for the new goods and services tax (GST) after the parliamentary vote last week. India now has a new monetary policy regime that is focused on inflation control. The new bankruptcy code will help deal with what Arvind Subramanian has described as the problem of capitalism without exit. The Fourteenth Finance Commission has given fiscal muscle to the idea of cooperative federalism. The Modi government has also dealt with the administrative tangles that almost ruined the Indian economy—ranging from the way natural resources were being allocated to the mismanagement of the food economy, to defence modernization.