Do We Need More Reforms … !!! … ?

Most of the debate on the Indian Economic Reforms has centered on what the government needs to do. Little attention has been paid to what Indian Industry and Business need to do to respond successfully to the reforms.

When ever Indian Economic condition come into mind, we always think and say that Indian Economy needs some more reforms. We give so many examples that even after 2 decade of Indian Economy Liberalization, many areas are still untouched and this untouchability is the main reason of not so better rise of Indian Economy.

We compare India with USA, Germany, Japan, and to even our neighbor, China. We argue that because of all round reforms, they are rising so fast.

To some extent, this thinking is correct, but we forgot to analyze that they are rising not because of maximum number of reforms, although due to Sustainable Reforms and their Implementation.

Reform is a word which gives us a freedom to improve the system without going against it. But here, in our country, definitely reforms are in place but the most requisite thing, Freedom, is not easily accessible to everyone.

In 1969, when then Indian government was trying to introduce the draconian act, MRTP Act, Respected J.R.D.Tata said to a member of parliament “ I am convinced that a prime cause of the Inefficiency and High Cost prevailing in most public enterprises does not lie in the Quality, Competence, or Dedication of their management and staff, but in the continuing denial to them the Degree of Managerial Freedom of Action essential to the Efficient Management of any large undertaking.”

His words are 100% true even after 40 years.

For rise of economy, we do not need more and more reforms but we have to look into how can Indian Business Community respond to them.

For an example, Telecommunication sector liberalized way back, and this a best example of reforms which touched almost every Indians. Why? Just because Indian Industry had taken this reform hand to hand , this Industry almost got a free hand, implemented an efficient management and thus this become a success story.

But Indian Industry failed to catch many other reforms, and they constitutes a large stock pile eating dusts in offices.

Take an example of Labor Sector. So many reforms are already in place. Labor law protecting the rights of labors but on the other hand, we also have to look whether it is affecting the Indian Industries in a negative manner?

A genuine case, when after long battle of almost 14 years, a company got the right to remove an employee who were caught sleeping during working hour !!! How can that company will increase it’s industrial output?

Gurgaon Honda Incident is open to all of us. That incident is a strong evident of some mismatch.

Now think, if a company do not have the right to remove an incompetent employee, how can we expect that Indian Industry will rise? And for whom this reform is?

Freedom is the foremost criteria to increasing the efficiency in industry. This freedom must not be unchecked but it must be there. Then only a sustainable reform can help in rise of Indian Economy.

Now a days, every industry is focusing on quality, and quality reforms are already there to help them. So why we need more reforms? First Indian Industry must have to respond successfully to reforms instead of thinking about quantity.

With the help of quality reforms, we can reduce the high cost and increase the efficiency. Then only Indian Economy will become as par with other developed country.


“The interval between the decay of the old and the formation and establishment of the new constitutes a period of transition, which must always necessarily be one of uncertainty, confusion, error, wild and fierce fanaticism.” … JOHN C. CALHOUN

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