INDIA Prime minister Manmohan Singh’s government has been blowing hot and cold on economic reforms. The present political and economic circumstances in India – a stable political coalition and a rebound from the global recession – give Mr Singh a chance to deliver real reforms, which are crucial for sustained growth that does not leave behind much of the population. Marginalism on reforms now would be a colossal wasted opportunity.
Why bother with reforms? After all, India’s economy has weathered the global financial crisis quite well. This is testimony to the country’s tremendous potential – exemplified by a young labour force, a dynamic entrepreneurial class and an improving financial system. But India will always punch well below its weight if it does not remove barriers that keep it from fully tapping that potential.
