The Hindu Business Line : Swings unlikely in economic policy

OVER the past decade, economic policy and reforms have, by and large, demonstrated a unidirectional trend, irrespective of the party in power at the Centre.

While it is quite premature at this juncture to take a firm call on the change in such policy on account of a change in the party or coalition in power, prudence suggests that the course of policy and reform are likely to be maintained, if not strengthened.

The pace of reforms could be argued upon considering the exact composition of the Government, but in view of the demonstrated track record of successive governments of supposedly diverse ideologies, it is difficult to expect any substantial change to occur in economic policy now.

The ideologies of the parties that are likely to lead the country in the present and foreseeable times may differ on a variety of issues, but they are likely to converge on the economic and business fronts, and for good reasons.

The underlying "truths" that are going to drive growth and employment, and consequently voter support, are likely to remain common across party lines.

Presumably, different parties in power seem to have somewhere in their hearts taken to the expression "good economics is good politics", first heard almost a decade ago.

And there is hardly any doubt now as to what constitutes good economics.

Control and protectionism seem to be obsolete, though the issue of disinvestment may still be up for debate while social sector development and employment generation may require additional attention.

The notable developments of the past few years, related to roads and highways, telecom, power, information technology, global competitiveness and increasing efficiency of the domestic sector, are likely to prevent any significant change in the nature of economic policy.

(The author is Managing Director, ICRA.)