GDP And Our Judges

Courts are intervening in economic policy matters in a way that’s costing India big

- Amitabh Kant

A Supreme Court bench recently proposed that an expert committee of Election Commission, Finance Commission, Niti Aayog and RBI officials alongside political representatives must look into the economic impact of freebies doled out by governments. The court’s concerns are understandable, but they must also be mindful of governments’ economic imperatives.

Ultimately, governments are accountable to citizens for providing them a good standard of living. And only progressive and inclusive development will lead Indians to prosperity.

India is fortunate to have an extremely independent and forward-thinking judiciary, one which on several occasions has provided clarity and direction to the country since Independence. However, two troubling aspects of judicial interventions require further deliberation, external expertise, new assessment framework, and a macro-perspective.

• Climate of uncertainty:

Firstly, SC must take the lead in providing a sense of certainty through its judgments. An uncertain legal scenario is a great dampener for the private sector.

Verdicts that have economic implications must be carefully weighed by courts. The economic impact of verdicts mustn’t be a strain on the nation’s development prospects.

• Threat of criminality: Secondly, courts must accept bona fide decisions by civil servants, which have been upheld and cleared.

The current situation where the judiciary is involved in decisions that override economic growth or which reopen already settled matters is putting the executive and judiciary at cross-purposes, even when both have larger public interest in mind.