Surjit Bhalla: Questioning Policymakers Crucial for India’s Growth

Economist Surjit Bhalla recently asserted that India’s economic growth is significantly hindered by a public culture that discourages questioning policymakers. He emphasized that progress in a democracy stems from public accountability from both policymakers and industrialists. Bhalla highlighted that even university students are not encouraged to ask critical questions.

The Call for Public Accountability

Bhalla, who previously served on the Economic Advisory Council to the Prime Minister, believes that an environment of questioning leads directly to answers and forward momentum. He argues this lack of public scrutiny is the most detrimental factor impeding India’s potential.

Boosting India’s Investment Landscape

To propel growth beyond the current 6-6.5% range, Bhalla proposed several economic adjustments. These measures aim to enhance India’s international competitiveness and attract greater investment.

• Increase India’s investment rate to 34% of GDP, up from the current 28-30%.
• Reduce existing tariffs to foster a more competitive economic environment.
• Eliminate policy measures like Quality Control Orders (QCOs) that diminish returns on investment.

Shifting Towards a Promotional State

Echoing calls for economic reform, former Niti Aayog Vice Chairman Rajiv Kumar also spoke at the event. Kumar stressed the need for India to transition from a ‘regulatory state’ to a ‘promotional state’ to better support private-sector activity and expansion.

He further advocated for a substantial increase in India’s global trade presence. Kumar suggested aiming for two to three times the current share of world trade, primarily by boosting manufacturing and manufactured exports.

• Transition from a ‘regulatory state’ to a ‘promotional state’ for private sector encouragement.
• Increase India’s share of world trade by two to three times.
• Boost manufacturing and manufactured exports significantly.
• Implement state-specific export promotion policies, recognizing that a pan-India approach would be ineffective.

Both economists underscore the importance of systemic shifts, from public engagement to targeted policy reforms, to unlock India’s full economic potential.