Context: The transformational nature of India’s policies is becoming hard to ignore.
India’s successful Socio-nomic transformation
India’s fiscal restraint amidst pandemic: Countries which went over the top in providing massive fiscal and monetary stimuli after Covid laid their economies low did not get bang for the buck.
In fact, they may be heading for a debt trap.
Reformative economic reforms: The difference between economic reforms of 1991 and 2014-21 period is that the former was driven by bankruptcy, the latter by pure reformative intent.
Phase of Socio-political venture capitalism at work: Investment in many start-ups and schemes knowing full well that 60-70 per cent of his investee companies and schemes will fail, 10-15 per cent will deliver in spades, and the remaining 20-30 per cent will do reasonably well to justify the investment.
Swachh Bharat and Ujjwala were huge successes. GST will deliver with some tweaks and in need of “root and branch” reform. For ordinary people Nal-se-Jal will be hugely beneficial.
360 degrees approach to any problem: Ujjwala, Saubhagya (providing last-mile power connections to the home), Swachh Bharat, Ayushman Bharat and Nal Se Jal are separate initiatives.
Taken together, they empower the homemaker and improve health outcomes.
Formalisation of economy: GST push for tax compliance, demonetisation, and the extension of social security benefits to many more workers Indian business has taken a big leap towards formalisation.
Jan Dhan, DBT and unified payments interface, more Indians are now part of formal financial sector.
e-Shram portal for migrant labour, gig economy workers are being visibly formalised.
Supply-side reforms: Building an internal supply chain for inputs and products at a time when global supply chains have broken down.
Atmanirbhar Bharat and production-linked incentives are not about import substitution. Globalisation cannot work unless there is strong localisation.
Successful Vaccination drives: Initiative involved many actors working together all the time. Government labs and private companies worked in partnership to create two high-volume India-made vaccines at low unit costs.