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A proposal that
is a subject of debate |
The big change that has taken place on New
Delhi’s Raisina Hill in the last two decades
is the manner in which North Block,
headquarters of the finance ministry, and
Udyog Bhavan, which houses the ministry of
commerce and industry, have ceased to be the
centres of controversy over economic
policies.
The first decade after the P V Narasimha Rao
government introduced economic reforms in
1991 saw the finance ministry and the
ministry of commerce and industry engaged in
a variety of heated battles with different
industry groups and political formations.
Should the government free most industries
from all licensing controls? Will the
reduction in import tariffs flood the
country with cheap imports resulting in the
closure of industries and job losses? Can
the government make foreign trade policy
simpler, transparent and non-discretionary?
Will government coffers empty if direct and
indirect tax rates were slashed to
prevailing international averages.
The second decade of reforms saw a quiet
transformation. Although few battles
remained over the merit of economic reforms,
fresh changes in fiscal, trade and
industrial policies were of an incremental
nature and triggered little opposition.
The remarkable feature of this period was
that though new and different political
groups formed the government at the Centre,
the broad thrust and direction of reforms
remained the Narasimha Rao-Manmohan Singh
model enunciated in 1991. Thus, the annual
export and import policies became less
important and relevant but there was no
going back on the path charted out by the
early reformers. So, clear signs of a shift
in the battleground over economic policy
changes are now evident as North Block and
Udyog Bhavan settle down to a more relaxed
and sure environment in which they can
implement the remaining reform agenda. The
scene of battles for the next round of
reforms or policy action has shifted to
other Bhavans around Raisina Hill.
Take a look at Transport Bhavan, where the
ministry for roads and surface transport is
headquartered. Kamal Nath, who is in charge
of the ministry, is battling the Planning
Commission to get some more freedom over the
manner in which he can accelerate the
construction of national highways with
private sector participation. Across the
road, there is Shastri Bhavan, where the
coal ministry is headquartered. That
ministry is now busy putting in place new
regulatory architecture to allow auctions of
coal mining blocks in a transparent manner
so that political patronage or ministerial
discretion in the award of such contracts
becomes a thing of the past.
Paryavaran Bhavan, which houses the ministry
of environment and forests, is another
emerging battleground over economic policy.
An intense debate over pursuing industrial
development without adversely affecting the
environment or tribal people is now raging
across the nation, thanks to a series of
measures initiated by the ministry of
environment and forest.
The department of education in the ministry
of human resources development is also busy
finalising a new policy framework allowing
private industry and foreign universities to
set up educational institutions in the
country, a proposal that is a subject of
debate. |
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