- The policymakers, economists, experts, and the concerned authorities tasked to frame reformist measures would be wondering what went wrong with the three Agri-Laws introduced last year leading to a sustained agitation by the farm unions and the subsequent repeal by the Union Government as well as conceding their key demands in the bargain. Of course, reforms being envisaged by the policymakers from now on should find ways to change the status quo by learning from botched attempts like the badly drafted farm laws. As can be observed over the issue, one crucial lesson learned should be to accord the deserving importance and attention to detail.
PC: Malini Goyal
- Mind you, the intent and overarching vision as regards farm laws were always right that cannot be questioned. However, the design of the legal framework limited the potential impact of such a far-reaching reform. It is commonsense to have in place a smooth dispute redressal mechanism in deepening the market of any product. Prima facie, a poorly designed dispute settlement method was a glaring weakness in the repealed farm package. Make no mistake, reforming complex economic structures calls for teamwork. While the political executive needs to provide the much-needed impetus, implementation will inevitably require credible teams that have bought into the need for change.
- Any deviation from the time-tested methodology would result in a logjam, as witnessed in the Agri-Laws. Over the years, successive governments have surely tried to crystallise important changes in the economic structure. Unfortunately, a common thread running through many of them is paying inadequate attention to detail and follow-through. Take for instance the case with the Railways. It’s been over six years since a committee under Bibek Debroy submitted a report spelling out the sequencing of changes to unlock the potential of private participation in Railways, which incidentally began almost 30 years back.
- However, key measures such as cleaning up the accounts and setting up a regulator endowed with operational autonomy are still pending. This is nothing but lack of attention and failing to pursue with desired zeal. To its credit, the present dispensation at the Centre has made honest efforts at initiating a few reforms. Of which, one of the most significant reforms is the Insolvency and Bankruptcy Code (IBC). People in the know would baulk at the way the creation of a bad bank to help commercial banks to offload their NPAs is proving to be a hurdle in the efficacy of IBC functioning in the desired manner.
PC:
- No wonder, the relatively slow process, 73% of ongoing resolutions having crossed the extended timeline of 270 days, is nudging banks to seek alternatives. Failing to address this emerging situation would possibly jeopardize the reformist measure. Needless to mention, given the importance of an effective IBC to India’s fragile financial sector, the authorities must ensure this reform eventually realizes its full potential. A welcome fallout is that it will become easier to convince all stakeholders of future reforms when there is success to showcase. Of course, more reforms thoroughly researched and bereft of potential red flags in the future should ensue
