Economic Reforms in India: Perpetuating Policy Paralysis

Abstract

This paper examines the current state of economic reforms in India and the phenomenon of policy paralysis leading to almost complete lack of progress on reforms. It studies the qualitative aspects of reforms in India over the last couple of decades and explains how these have changed over time. It discusses the role of coalition governments, an increasingly regressive political economy and lack of strong political leadership in fostering the policy paralysis and expects the latter to prevail in the foreseeable future.

Keywords: Economic reforms, reforms, India, economic policy, policy paralysis, reforms policy

JEL Classification: E65, E66, O10, O20, O38, O53, Z18