UNBLOCKING INDIA'S POLICY IMPACT CHALLENGE

INDIA'S ECONOMIC HISTORY is rich with instances of policy interventions which transformed the country's economic and political terrain. 

- Amit Kapoor, Amitabh Kant & Christian Ketels

The last few years, especially, have seen a wide range of ambitious policy initiatives. Since 2014, India has launched significant initiatives like the implementation of the Goods and Services Tax (GST), JAM Trinity (Jan Dhan-Aadhaar-Mobile), and the Make in India initiative. Prime Minister Modi and his Cabinet have set out to energise entrepreneurship, modernise the regulatory processes, and prepare the education system to meet the demands of the future. Moreover, self-sufficiency, inclusivity in growth, and maximising good governance are just a few of the objectives that have been put high on the policy agenda.

India has seen significant improvements in several economic indicators over this period. But while for example inclusion has been a crucial ambition, there is s agreement that the gains of economic growth need to drive prosperity gains more widely across the population. The State of Inequality Report 2022 states that the top 10 per cent of earners make roughly the same amount as the lowest 64 percent of earners.

India must take a hard look at why this gap between outcomes and ambitions remains, even where the political objectives are so clear. This analysis leads to the critical role of an effective architecture for implementing policy. Implementation of policies must remain a focal feature of the conversation surrounding this issue. Reforms take time to take effect entirely, but how well they are implemented now will determine how they affect society in the future. A policy revision is only complete when it results in improved implementation as well.

Policy Issues at the Implementation Level