Earlier, India's agricultural laws were oriented toward middlemen rather than farmers and consumers. Labor laws did not focus on labor, but on labor inspectors. Education laws were not focused on students or learning, but on grant boards and boards of education. So why didn't India change the laws for decades?
Dadabhai Naoroji Dinyar Patel's biography contains three lessons for reforming dysfunctional regimes. First, any change requires evidence. Second, any change must be balanced. Finally, any change requires openness.
Reforms in education, agriculture, and labor laws are linked. New education policies, labor codes, and agrarian bills offer a chance for India's land, labor, and capital to work in synergy and increase overall productivity. Young people, farmers, factories, and small and medium-sized businesses will benefit most from the reforms.
Reforms are a form of hope, especially in difficult times, when COVID-19 is wreaking havoc on the entire economy. India has succeeded in building democracy on the ungrateful soil of the most hierarchical society in world history. The new national goal, however, must be to strive to create the world's largest economy. India aspires to this goal with a per capita income of $15 thousand. India has a unique chance to achieve massive prosperity because of structural, domestic and global opportunities.
The current reform is very important, but it must be followed by reforms in banking, civil service, and decentralization and urbanization. In the next decade, the systemic transformation should increase the employment of manufacturing workers from 11% to 18%, reduce the number of peasants from 45% to 15%, increase the number of women workers from 25% to 50%, increase per capita income from $2.5 thousand to $10 thousand.
India's old economic way allowed vested interests to control land and the labor market and limited individual economic freedom. The new Indian way of development, on the other hand, opens up a wide field of possibilities for workers and farmers, and echoes John Maynard Keynes's quote that "in the long run almost anything is possible.