New Delhi, Dec 27 (GCCurrentAffairs) Charting out new road map for economic revival in the next few months, the ruling BJP-led dispensation is unsure of undertaking drastic and sweeping reform strategy like privatisation.
Closer interaction with party leaders suggest there is a lobby which would continue to press for protectionist trade policies and conservatism.
The new Budget 2020-21 to be presented early next year will thus have to overcome the hurdles from Hindutva trade unions and small business lobbies which have over the years stuck with the BJP.
However, BJP insiders say there have been immense improvement in infrastructure front including the enhanced electricity grid. India has also climbed 65 places up the World Bank’s Ease of Doing Business Index and pulled in record hauls of foreign investment.
But, deeper structural reforms have always been ‘compromised’ when it came to deal with risking the political capital.
How much of that can be done when the government faces CAA and NPR controversies remain to be seen.
Sources admit, labour laws continue to make hiring and firing too expensive and there are laws which only make it hard for companies to acquire land.
These are harming growth of manufacturing base despite Prime Minister Narendra Modi’s push for ‘Made In India’ campaign.
Apparently, disappointing its admirers and those who wish to see economic reforms, the Modi government has avoided taking calls on privatisation front and instead forced some state-owned firms to swallow sick ones.
Pessimism about reforms has come to stay not without good reason as more often the government finds itself facing the wrath of organisations such as Bharatiya Mazdoor Sangh (BMS), the powerful trade union affiliated to the RSS.
The new Industrial Relations Code, 2019 presented in Parliament has already come under attack from the BMS.
The Bill, according to government, proposes to make it easier for an employer to engage and disengage workers based on requirement. This would also make the process of hiring and firing smoother.