Q.33 Discuss the transformational reforms initiated by the Government in recent times.

Ans. We have seen a major change in the Government’s stance towards the need of reforms—several steps of reforms have been taken which have been termed as transformational. These reforms are ‘transformational’ in this sense that they are aimed at transforming the very outlook to policy making and are taken in a long-term perspective. We may have a look on the major ones—

(a) Inflation targeting and setting up the Monetary Policy Committee by amending the RBI Act, 1934;

(b) Restarting of the ‘strategic disinvestment’ of the PSUs;

(c) Demonetisation of the high denomination currency notes (aimed at checking corruption, black money, tax evasion, fake currency and terrorism);

(d) Enactment of the new Benami Law (aimed at checking black money);

(e) Bankruptcy Law (aimed at promoting the ‘ease of doing business’); and

(f) Enactment of the Aadhar Act (aimed at rationalising and weeding out corruption in the present subsidy regime); and

(g) Attempts in the direction influencing the ‘behavioural pattern’ of the citizens to promote the cause of socio-economic well being; etc.

The Union Budget 2017–18 has clearly termed them transformational reforms. As these reforms are aimed at long-term gains, there might be some political backlash on them. But this is the way, economies grow up and get mature. Remark from the latest Economic Survey 2016–17 looks quite correct in this case—economic reforms are not, or not just, about overcoming vested interests, they are increasingly about shared narratives and vision on problems and solutions.