Prime Minister Narendra Modi sometimes poses a rhetorical question to those who complain about the slow pace of his Economic reforms: Can those demanding so-called “big bang” reforms list what exactly they have in mind?
In a spirit of solicitude, here’s a suggestion. If Mr. Modi wants to end the complaints, he doesn’t need a laundry list of policy measures. Merely setting his Government on the path to Privatization, as India’s previous Bharatiya Janata Party government (1998-2004) did, would quell doubts about the prime minister’s reformist chops.
Privatizing many of India’s lumbering state-owned firms would raise government revenues, allocate resources more efficiently and focus the government on what it does best. Pursuing privatization would carry political benefits as well: Mr. Modi was elected two years ago with India’s largest mandate in 30 years by running on a platform of economic rejuvenation.
A full-text version of this article may be found in The Wall Street Journal.
Source: New AEI Feed
Modi’s sluggish economic reforms need a jolt of privatization