This refers to “India Inc's unique challenges” ( Business Line , April 2). Uniqueness in India arises from competing and conflicting objectives in a country with a large population and high unemployment. So, in recent years, reconciling the past with the present and the future has become a challenge. Developing mutual trust between the government and the public is vital in emerging India.
Half a century of planned economic development has culminated in rigid labour laws, fragmentation in industrial and agricultural sectors, and emphasis on inclusive growth with priority for development of entrepreneurship, industrial units, and backward areas, supported by appropriate lending, concessions and subsidies, to bring about all-round growth. The economic structure followed that course, paving the way for further growth in the ‘reforms' era since the 1990s.
With the experience gained, especially in the coalition era, there should be a second wave of cohesive reforms suited to the “current uniqueness” of the growth phase for the emerging economy.
Unless proper market mechanisms are in place, it would not be possible to manage risk to sustain and improve domestic and global resilience. This cries out for reforms.
K. U. Mada
Mumbai
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