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Soumik Dey
Soumik Dey

BOOK LAUNCH

Politicians need to blend reforms with politics: Jaitley

PTI8_4_2017_000189A Former prime minister Manmohan Singh presenting to Finance Minister Arun Jaitley a copy of the book "India Transformed: 25 Years of Economic Reforms" authored by economist Rakesh Mohan | PTI

Experts discuss India's unfinished reforms agenda in Penguin's new book

From leading lives under a control and licence raj, India initiated the reforms in 1991. Now, 26 years after the process was kick-started by former prime minister P.V.Narasimha Rao and then finance minister, Manmohan Singh, a new book from Penguin discusses the hits and misses of this era.

The book 'India Transformed: 25 years of Economic reforms' is published by Penguin India and authored by 31 big names from the corporate, finance and government. The volume, that promises to be the ultimate compendium on reforms process, is edited by Rakesh Mohan, former RBI deputy governor and former IMF director.

Names who have authored essays in the book, discussing different aspects of the reforms done in India, include Mukesh Ambani, Naushad Forbes, Gita Piramal, Shyam Saran, N.K. Singh, Rama Bijapurkar, Ashok Gulati, Sunil Bharti Mittal, N.R. Narayana Murthy, Y.V. Reddy and Kiran Mazumdar Shaw.

Speaking at the launch event, Finance Minister  Arun Jaitley said, "1991 was a defining moment for India, it changed not only the course of economic development in the country, but it had also changed the mindset."

"It is said that there is a political cost that any reformer must pay. So, many are afraid to introduce reforms. Politicians need to blend their reforms agenda with a little politics," Jaitley said.

"There is no finishing line as far as reforms are concerned," he said, emphasising that the reforms process is still largely ongoing.

Speaking at a panel discussion of the book launch, Uday Kotak, chairman, Kotak Bank stressed on reforms needed in the banking sector. 

"Radical reforms are needed to allow privatisation of PSU banks. A lot of focus is now given on entry to the financial sector, through payments bank, NBFCs. The sector has expanded with these new entries, but very little focus is given on exit from the financial sector, which is known to cause huge distress to everyone when a business announces its exit," Kotak said.

Describing the pace of reforms in India, chief economic adviser Arvind Subramaniam said, "In India, from socialism with limited entry we have now a capitalism without exit."

Leading intellectual and legal expert, Pratap Bhanu Mehta, speaking at a panel discussion after the book release, said India's reforms had largely missed out on delivering public goods, namely education and health.

Stressing on the need for government support, instead of private industry, for providing public utilities like health, education, Rakesh Mohan said: "India's private sector will not be able to grow better unless it has enough public utilities in place."

Reacting to his statement, Uday Kotak said, capitalism minus social welfare in India is encouraging socialism. 

Former prime minister Manmohan Singh also attended the book release function. Though invited to be the first speaker at the book release, Singh declined to speak anything and disembarked from the dais. 

He, however, watched the proceedings of the entire evening from his front row seat among the audience.  

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Topics : #Arun Jaitley

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