The 10 biggest India’s policy mistakes of the past that have yet to be dealt with

Shankar Acharya gives his list:

As monsoon showers blanket the country, the prevailing economic mood is still one of waiting for the economic recovery. Few pay heed to the controversial, new series GDP growth data which indicate that the recovery began (improbably) in 2013-4 and is now in full swing. All the other indicators (index of industrial production, purchasing managers’ indices for manufacturing and services, bank credit growth, corporate earnings and tax revenue growth) still suggest a sluggish economy, marking time and struggling to rebound. There are conflicting signs on the investment cycle, certainly nothing to suggest a full-blooded recovery. If one steps back from the present, and looks at the various legacy constraints and impediments to a vigorous revival, the current situation is hardly surprising. Some of these legacy constraints go back several decades; others are due to freshpolicy mistakes of the last ten years. Here I list my “top ten”, six from the earlier past and four from the latest decade of United Progressive Alliance (UPA) governance.

6 from the earlier past are:

(1) Subsidies for electricity, irrigation water and fertilisers to agriculture
(2) Nationalised banksĀ 
(3) Labour laws
(4) Neglect of urban governance
(5) Unreformed administrative structures
(6) Neglect of public health

4 from UPA-II are:

(7) Land Acquisition Act (2013)
(8) Entitlement laws
(9) Backwash of major scams
(10) Crony capitalism

 

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