Opinion: 9 Years, 9 Reforms

Morgan Stanley's recent analytical report has swiftly become a central discourse in academic and financial spheres, vividly illustrating through a series of charts the extensive transformation of India since 2013. This period notably coincides with a seismic shift in the country's political landscape as the reins of the union government transitioned from the UPA to the NDA. The study enumerates 10 notable shifts, including supply-side policy reforms, the formalisation of the economy, the implementation of the Real Estate (Regulation and Development) Act, digitalising social transfers, the enactment of the insolvency and bankruptcy code, flexible inflation targeting, augmented focus on foreign direct investment (FDI), India's defining 401(k) moment, government support for corporate profits, and a multi-year high in MNC sentiment.

While critics have been quick to label this assessment as selective, it's hard to dispute the comprehensive nature of the reforms undertaken in the last nine years. Admittedly, certain reforms remain a work in progress, yet the government's commitment to progress is palpable. We propose to elaborate on nine reform measures (some of them have also been mentioned in the Morgan Stanley Report) that India has systematically implemented across various sectors, thereby fortifying the nation's economic resilience and elevating its stature as an economy full of promise.

(1) Goods & Services Tax

The first one on the list is the introduction of GST. The implementation of GST in 2017 has marked a significant transformation in the Indian economy, streamlining the indirect taxation system under the unifying principle of "one nation, one market, one tax". Eliminating internal tariff barriers and consolidating all federal, state, and local taxes into a single GST has enhanced market integration across the country, benefiting India's vast population of 1.4 billion people. This transformation has digitalized India's economy, leading to a standardized, seamless flow of information and making tax collection more effective.