AIR Spotlight: Discussion on Economic Reforms Gathering Momentum | Testbook.com

As a daily feature on All India Radio Newsonair, AIR Spotlight offers in-depth discussions on pertinent issues. The insights shared by respected panelists in this program could be of immense value to candidates preparing for the IAS exam . This article delves into the economic reforms that have been making waves in the country recently.

Panelists:

• Dr Arvind Panagariya, Ex-Vice Chairman, NITI Aayog
• Siddharth, Renowned Economic Analyst

Significant economic reforms introduced recently:

• JAM Trinity – (Jan Dhan Accounts, Aadhaar, and Mobile) has improved the efficiency of subsidy distribution, reducing leakage. Gain more knowledge about the JAM Trinity in the linked article.
• The Insolvency and Bankruptcy Code has freed up stuck capital by streamlining the process for stressed asset resolution.
• The Goods and Services Tax system has eliminated the cascading effect of taxes seen in the old indirect tax regime.
• The shutdown of unviable public sector units and the privatization of major entities like Air India is also noteworthy.
• Corporate profit tax has been rationalized.
• Significant labour law reforms have been implemented. Learn more about the labour codes in the given link.

Importance of these reforms:

• These reforms have contributed to consistent economic growth in recent years.
• They have also improved the ease of doing business in India.

Current challenges facing the Indian economy:

• Persistent issues in the financial sector.
• The economic disruption triggered by the COVID-19 pandemic.
• The pattern of growth without job creation.
• High poverty rates due to unequal growth patterns.
• Capital flight from India due to rising interest rates in the U.S. market.
• Inflationary pressures in the economy.
• Depreciation of the Indian rupee.
• Rising crude oil prices.

Suggestions:

• Rethink the import substitution strategy.
• Focus on boosting India's exports.
• Prioritize credit growth, which requires addressing the deep-seated issues in the financial sector.
• Invest in the social sectors of education and health to leverage the potential demographic dividend .
• Pursue rapid economic growth that is also inclusive, with a focus on job creation and poverty reduction.

Read more Gist of AIR Spotlight here .