He cites government attempts to privatize large number of public sector companies that have been stuck despite Prime Minister Narendra Modis' efforts to gain cabinet approval for the NITI Aayog list of companies .
But once the case was referred to the Ministry of Investment and Public Asset Management (DIPAM), it got stuck, says Panagariya in his book India Unlimited, Reclaiming the Lost Glory, adding that the labor law reforms offered another example of how the bureaucracy had blocked efforts. of the political executive.
He says that the bureaucracy's adherence to socialism remains deeply ingrained in the education that its members receive in Indian universities, where professors are often attached to anti-business and anti-market ideology .
Given the dream of an ideal world that socialist ideology offers, young people are naturally drawn to it. This attraction is reinforced by the anti-market ideas that their college teachers transmit to them, explains Panagariya, who was the first vice-president of NITI Aayog, a government think tank that replaced the Planning Commission.
A final example concerns the reform of the public service. Prime Minister Modi lobbied for lateral entry into the upper echelons of the bureaucracy for several years. But based on publicly available information, it is reasonable to conclude that the bureaucracy slowed the process down to such an extent that it was only at the very end of their tenure that nine officers were able to be inducted from the outside, says Panagariya, who has returned to academia and is a professor of economics at Columbia University.
The civil services in India welcome a large number of these young people (taught by leftist faculties) at an early age. Once inside government, they find themselves safe in the company of others like them for the rest of their working lives, he says.
The Columbia University professor is also sparing India Inc for the lethargy over the reforms.
Remarkably, in India, even business leaders have played an insignificant role in promoting pro-market reforms. In most countries, companies are trying to use the economic crisis as an opportunity to demand the removal of regulations that hinder their progress. But in India, they are using the crisis as an opportunity to seek subsidies and protection against imports, he said.
They want the government to intervene more, not less to save their specific sector or industry. With rare exceptions, even business organizations and associations, which should represent the collective interest of businesses, have not bothered to push for growth-friendly reforms, says Panagariya.
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