DEMOCRATIZING
POLICY ACTION IN
INDIA
AMIT KAPOOR, BIBEK DEBROY, AND MEENAKSHI AJITH
A través de los años, the Indian state has responded to changing domestic and inter-
national circumstances through reforms, the most notable being the liberaliza-
tion measures of 1991. The substratum for reforms was steadily built using a
reservoir of knowledge drawn from ancient texts, the colonial state, and the In-
dian constitution, which eventually shaped the contours of public policy. Desde
independence, various governments have constituted and reconstituted India
through reforms. As a developing country, in a world riddled with cascading
crises ranging from the COVID-19 pandemic to climate change, India needs a
smart mix of innovative reforms for the future. Public policy has a critical role
to play in shaping this new vision of a human economy—to bequest the “India
way” of reforms for people and the planet. The idea of growth and development
in India today is human-centric and it resonates with the global discourse on
sustainable development and transitions for a resilient future.
Continued policy reforms are needed
to ensure a thriving human economy and
to close opportunity gaps that lead to social
fragmentation. A human economy is one
in which the thoughts, comportamiento, and lives of
people are valued above everything else.
When people thrive and are able to live up
to their full potential as workers, creators,
and engaged citizens, the economy and so-
ciety benefit greatly. Against a backdrop of
the emerging and persistent challenges the
world is currently facing, reforms to
achieve resilient growth go beyond mere
structural transformation. They call for
using a multi-level and multi-stakeholder
approach to build an environment that en-
ables the transition to an economy that is
human-centric, socially inclusive, and en-
vironment friendly. To live up to this ideal,
India needs reforms that include signifi-
cant investments in infrastructure, sustain-
capacidad, and education.
So what should today’s citizens expect
from policy reforms in India? The mantra
for today’s rapidly developing India is
“Everyone’s Partnership, Everyone’s Pros-
perity, and Everyone’s Trust.” This is a call
to action for the citizenry to shape future
reforms. It is the active democratization of
the policy space in India, a process that
began much before the rise of human
economía. Contrary to popular belief, el
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Indian state has already built a robust plat-
form for citizen engagement, thus the onus
is now on citizens and state governments
to drive transformational initiatives. En
this paper, we look into the high-impact
sectors of change in India and briefly de-
scribe the country’s policy heritage, también
as the way forward.
THE SUBSTRATUM OF
REFORMS IN INDIA
The Indian Government had a lucid man-
date for nation-building immediately after
independence. Growth agendas were com-
prehensible, tradeoffs were justified, y
the country was poised to become a global
superpower. The idea of reform in a newly
independent India was nascent, or perhaps
an intrinsic element of the mundane activ-
ities of the government. Everything from
unveiling the constitution to economic
planning was synonymous with reforma-
tion for the newborn state. Seventy-five
years and many governments later, el
citizens’ and the state’s understanding and
expectations from policy reforms have
been changing rapidly. Since the 1990s,
policy reform has been perceived as the
basis for vitalizing and sustaining growth.
Today’s government policies have become
the mast and touchstone of research and
action in India. Good governance and par-
ticipatory democracy have become
buzzwords for India’s growth strategy.
Sin embargo, growth is directly proportional
to the functioning, efficiency, and behavior
of the government and the citizens. Cómo
ABOUT THE AUTHORS
Amit Kapoor is the Honorary Chairman of the Institute for Competitiveness, India. He is an affil-
iate faculty member teaching the Microeconomics of Competitiveness & Value Based Health Care
Delivery courses at the Institute of Strategy and Competitiveness, Harvard Business School, dónde
he has also been inducted into the Competitiveness Hall of Fame. Kapoor lectures at Stanford Uni-
versity, where he has launched a new course “Reimagining Capitalism/Rebalancing Economic
Systems” with Professor Richard Dasher. With Michael Porter and Christian Ketels, he is co-author
of The Competitiveness Roadmap for India at 100.
Bibek Debroy currently serves as Chairman of the Economic Advisory Council to the Prime Min-
ister of India. He has made significant contributions to the study of game theory; economic theory;
income and social inequality; poverty; legal reforms; railway reforms; and Indology, among other
temas. Debroy was a member of NITI Aayog, the think tank of the Indian Government, from its in-
ception in January 2015 a junio 2019. He was awarded the Padma Shri (the fourth-highest civilian
honor in India) en 2015.
Meenakshi Ajith is a researcher at the Institute for Competitiveness and is currently consulting
with the Sherpa track of India’s G20 presidency. She was associated with the Development Mon-
itoring and Evaluation Office of NITI Aayog, working on areas of regulatory governance. Ajith
has experience on a range of development policy issues, with particular expertise in climate action,
ambiente, and clean energy transitions.
© 2023 Amit Kapoor, Bibek Debroy, and Meenakshi Ajith
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Amit Kapoor, Bibek Debroy, and Meenakshi Ajith
do we streamline and synergize the efforts
of various stakeholders for better policy
resultados? What is the one “big bang” re-
form that will bring about positive trans-
formation in India? In this article, nosotros
discuss the substratum for reforms in
India, the high-impact sectors for action,
and how citizens can engage with the pol-
icy space to effect reforms in India.
GENESIS OF THE INDIAN
POLICY SPACE
Even the unassailable countries of the Glo-
bal North were stunned by the COVID-19
pandemic. India responded quickly to the
situation with a broad spectrum of policy
changes across sectors. Along with dealing
effectively with this and other catastrophes,
India has been growing as a complex so-
ciety and an economy with unbridled as-
pirations. Por lo tanto, policy reforms in
India are a continuous process, and all gov-
ernments and citizens must work toward
this end. Think tanks and NGOs are also
emerging as key partners in articulating re-
form agendas for the nation. En 2009, a
study commissioned by the central govern-
ment and carried out by CSO Partners, un
NGO based in Chennai, revealed that
India had one NGO for every 400 los ciudadanos,
a ratio that has since increased. This figure
suggests a highly aspirational Indian citi-
zenry. Literacy rates have shot up, y
grassroots democracy has been institution-
alized through the 72nd and 73rd amend-
mentos. Por lo tanto, expectations now go
beyond the economy to encompass social
política, salud, education, and infrastruc-
tura. It is critical to note that every country
has its unique heritage, resources, y
growth trajectory, and that building a con-
text-specific repository of information and
raising the right questions can help free
India from the shackles of restrictive pol-
icies and boost possibilities for a quantum
leap to a five trillion-dollar future econ-
omy.
The genesis of parliamentary struc-
tures and legislative procedures in India
did not begin with colonial rule. De hecho,
ancient Indian literature contains in-
numerable passages on every known the-
ory of contemporary governance and
policymaking. It can be traced back to the
Vedic age, when India was home to repub-
lican forms of government, self-governing
institutions, and deliberative bodies like
the Sabha and Samiti. The Ramayana, Mamá-
habharata, Kautilya’s Arthasasthra, Panini’s
Ashtadhyayi, the Ashokan Pillar inscrip-
ciones, and the Buddhist and Jain texts hold
pearls of wisdom from the past. Colonial
rule introduced Western premises and pre-
cepts, but the foundations of Indian tradi-
tions were not swept away by values from
the West. They were enshrined in the In-
dian constitution by leaders of the consti-
tuent assembly. This includes modern laws
relating to dispute resolution, punishment,
governance, and federalism, which can be
traced back to Shantiparva in Mahabha-
rata. The idea of respecting the wealth cre-
ators in an economy has been attributed to
the Chicago School of thinking, but it also
finds resonance in ancient Indian litera-
tura. Por lo tanto, Indians can and must con-
template “India ways” of reform for the
future.
To build the preliminary arguments, él
is essential to distinguish between policy
change and policy reform. The scope of
this article is limited to public policy re-
formas. In simple terms, public policy is as-
sociated with government actions or plans
for reaching a particular goal. While pol-
icies guide the activities of all kinds of or-
relates
ganizations,
política
específicamente
the government, y
changes in that realm refer to incremental
shifts in existing structures or to new and
innovative policies (bennett & Howlett,
1992). Reform, por otro lado, refers to
a significant policy change. Reich (1995)
notes that policy reforms are possible when
there is sufficient political will to represent
público
a
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Democratizing Policy Action in India
a selection of values that express a particu-
lar social view. A policy reform that allo-
cates benefits and costs has significant
consequences for a regime’s political stabil-
idad. Por ejemplo, the Goods and Services
Act in India, which reflected values such as
transparency and efficiency
a través de
measures like the anti-profiteering and E-
way bills, transformed the landscape of in-
direct taxation. The Union Budget affects
policy changes every year, but significant
reforms like GST require political will and
stability. This is not to say that reform and
change are airtight categories; they are but
two sides of the same coin. Tinkering
changes in policy eventually set the context
for a big-bang reform. The next sections
address the change and reform aspects of
public policy in India, including such
questions as, What does the future hold for
India? What are the high-impact sectors
that demand immediate attention?
REFORMS FOR SURVIVAL,
PROSPERITY, Y
EQUALITY
Survival
Climate change has real and immediate
human costs that are increasing with each
passing day. There is little doubt that the
painful effects of climate change will be ex-
perienced most by the people who con-
tribute to it the least.
Recurring catastrophes and soaring
temperatures have exposed the callousness
and obstinacy of global climate leadership.
India has expressed an unwavering com-
mitment to climate adaptation by com-
pletely aligning its national agenda with
the UN Sustainable Development Goals.
The government has made commendable
policy changes toward this commitment,
but major policy reform has yet to be for-
mulated. The good news is that incremen-
tal progress facilitated by the central
leadership has created a sturdy platform on
which to enact reforms. India’s national
strategy emphasizes energy efficiency, re-
silient urban infrastructure, and planned
eco-restoration, among other interven-
ciones. Desde 2015, clean cooking fuel has
reached an additional 80 million house-
holds through the Ujjwala Scheme. Ser-
entre 2016 y 2021, liquefied petroleum
gas coverage in the country increased from
62 por ciento a 99.8 por ciento. Installed capac-
ity for renewable energy has grown by 75
por ciento desde 2014, currently third-best in
el mundo. India also has leveraged global
partnerships to augment disaster resilience
and solar power infrastructure.
Sin embargo, responsibility does not end
after policies are passed or infrastructure
is built. The onus is now on states and
communities to take India’s sustainability
movement forward. The central govern-
ment can provide enabling infrastructure
for sustainability, but the ultimate behav-
ioral revolution in climate action must
begin at the state and household levels. Como
the prime minister reiterated at the UN
Climate Change Conference (UNFCCC
COP26), India should begin the move to-
ward Lifestyle for Environment.1
Investment in climate action un-
doubtedly creates a positive chain reaction
across sectors, ranging from food, energía,
and livelihoods to the very survival of
human life. India cannot consider inclusive
growth without first factoring in the costs
of climate change and pushing for reforms
to address these issues. Actualmente, floods,
droughts, tropical cyclones, and other ex-
treme weather events are damaging India’s
infrastructure, and its economic activity.
The climate is unquestionably a high-pri-
ority area for reform, as the positive impact
of eco-friendly planning far exceeds the
immediate financial costs.
Prosperity
Sound infrastructure facilitates the conver-
sion of wealth into well-being. It is a time-
tested indicator of civilization and progress
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Amit Kapoor, Bibek Debroy, and Meenakshi Ajith
going back to the Harappans, who appear
in the history textbooks because of their
extensive network of roads and meticu-
lously designed drainage systems. COVID-
19 presented a tricky opportunity for
infrastructure, especially in countries like
India (Abadie, 2020). The government’s fis-
cal capacities shrank while infrastructural
needs increased. During the pandemic, el
demand for healthcare, transport connec-
actividad, and digitized services were suddenly
rudimentary needs for conducting life.
Afortunadamente, India had made considerable
headway in infrastructural growth before
the pandemic. De 2015 a 2019, invest-
ment in developing roads tripled. The Bha-
ratmala
instancia,
revolutionized India’s road infrastructure
by building corridors, feeder routes, y
international connectivity. In the telecom
sector, the internet user base expanded
de 252 million in 2014 a 655 million in
2019. Similar policy changes were imple-
mented in primary healthcare, education,
urban mobility, etc.. The Government of
India launched the Smart Cities Mission in
2015 to enhance the quality of life in 100
cities and towns. All of these improve-
ments enabled the country to quickly scale
up its response to COVID-19.
proyecto,
para
Developing good infrastructure de-
mands a substantial investment, but it also
has a multiplier effect in terms of creating
employment opportunities, connecting
gente, and boosting socioeconomic activ-
idad. An extensive literature review by the
World Bank Group on the multiplier ef-
fects of infrastructure investments revealed
that the largest multipliers are associated
with public spending, rather than other
types of spending (Alentar, Vagliasindi, &
Gorgulu, 2022). The degree of change
varies for each sector. Por ejemplo, invest-
ment in renewable energy infrastructure
will create immediate multipliers in em-
ployment for the short term, but devel-
oping digital infrastructure can yield more
benefits over the long run. Evidence also
points to the fact that achieving the desired
social benefits relies on the productivity of
the public investment. Strengthening insti-
tutions and the economy’s competitiveness
is essential to making substantial infra-
structure policy reform. Además, infra-
structural reforms hold the key to
unlocking prosperous growth in India.
Igualdad
This section briefly outlines certain key
areas for social reform in India, a pesar de
the broad spectrum of topics falling under
social-sector reforms makes it an arduous
task to explore the scope of this sector
merely as a subsection. Social-sector re-
forms generally aspire to eliminate poverty
and inequality. Sin embargo, the elimination
of poverty cannot be achieved merely by
redistributing existing wealth, nor can a
program aimed only at raising production
remove existing inequalities. The two must
be considered together, as only a simulta-
neous advance along both lines can create
the conditions under which the commu-
nity can make its best effort to promote de-
velopment (Debroy & Jhurani, 2020). En
other words, social reform is not only
about pulling people out of poverty but en-
suring that they do not easily slide back
into it. In today’s world, all the aspects
mentioned above, including infrastructure
and climate governance, play a key role in
sustaining social-sector reforms in India.
India has a young population, con un
average age of 29. Tapping into the demo-
graphic dividend through reforms in the
education sector can enhance job creation
and employability in the country. De nuevo,
India needs simultaneous interventions
wherein opportunities for education, job
creation, and social mobility grow along-
side each other. To enhance overall pro-
ductivity, policy reform in education
should provide comprehensive coverage,
from primary education to higher educa-
tion research degrees. The paradox of fe-
male participation in the workforce in
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Democratizing Policy Action in India
India also calls for attention; as literacy
rates and women’s enrollment in higher
education have risen, participation in the
workforce has declined. The U-curve thesis
correlates economic development with
women’s participation in the workforce
(Goldin, 1995, 61-90), leading to the ques-
tion of whether India is now on this trajec-
tory or if there are other reasons for the dip
in women’s workforce participation.
India today has sufficient resources
and political will to design and execute
smart interventions, but the question re-
mains of how the government and its
citizens will approach policy reforms for
the future.
RESPONSIBLE CITIZENSHIP
With India’s diverse population, an argu-
ment can be made against the feasibility of
participatory democracy. India is a noisy
democracy with pockets of resistance, en-
stitutions for articulation, and platforms
for citizen engagement, and we are quick
to point toward high voter turnout as an
excuse for the non-performance of citizen-
ship duties the rest of the year. Sin embargo,
the real arena for engagement opens when
words turn into action. The foremost exer-
cise in meaningful citizen participation in
India is keeping an open mind. As a
country with multiple ideologies and di-
verse interests at play, fostering an atmos-
phere of acceptance and dialogue is crucial
for participation, although that does not
mean having a one-on-one with every In-
dian citizen. Passage of the 73rd and 74th
amendments has
el
country’s democratic institutions, haciendo
it easier to find that sweet spot between de-
liberation and participation. Citizens
should be aware of India’s efforts to democ-
ratize data and improve public access to in-
formación. Reviewing government reports
and policy documents will enable them to
ask the right questions to push reforms.
strengthened
GOOD GOVERNANCE AT
THE GRASSROOTS
Does India need a second state reorganiza-
tion commission? Now that the idea of
good governance and efficient delivery of
services is gaining traction, is there a need
to revisit state boundaries in India? The In-
dian states are essentially a product of co-
lonial whims and military or political
exigencies. El 1953 state reorganization
commission, which was largely fueled by
emotion, laid out “successful working of
the national plan” as a criterion for carving
out states. Times have changed, and since
2014, India has moved away from the one-
size-fits-all approach. Policy changes have
focused on localization and decentraliza-
ción. With such modifications, citizens and
the states should contemplate strategies to
optimize outcomes. Efficiency is a critical
pillar of good governance, and some states
in India are too large to govern, mientras
others are too small. India’s constitution
states that every citizen has an equal right
to access a minimum basket of goods and
services, but if the states, with their present
territorial boundaries, calculate the cost of
delivering this minimum basket, glaring
disparities are bound to emerge.
En 1958, India set up the National Pro-
ductivity Council as an autonomous body
under the Department for Promotion of
Industry and Internal Trade. Can today’s
Council calculate the cost of providing the
“minimum basket” in a way that will mini-
mize disparities? It is not uncommon to
witness inequalities in health, education,
and access to other essential services in In-
dian states, and these disparities need to be
addressed, both between and within state
boundaries. India’s citizens and the states
should work as equal partners to promote
el
competitive governance
country.
across
This is the “India way” of reforms—a
dynamic and equitable policy space, adap-
tive and responsive institutions and invest-
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Amit Kapoor, Bibek Debroy, and Meenakshi Ajith
Reich, METRO. (1995). The politics of health sector
reform in developing countries: three cases
of pharmaceutical policy. Health Policy, 32,
47-77.
1 This initiative encourages a lifestyle
focused on the mindful and deliberate use of
resources and aims to change present-day
“use and dispose of” consumption habits.
The idea is to encourage individuals to adopt
simple changes in their daily life that can
ayuda
cambiar.
https://amritmahotsav.nic.in/lifestyle-for-
environment-life.htm
clima
slow
a
ments for a sustainable and inclusive fu-
tura. The investments to be made are not
just financial but also in building human
capital and social capital for the human
economy in India. It is a constant expan-
sion of human capabilities that empowers
citizens to be agents of change while ac-
tively shaping an enabling environment
through policy reforms.
Reforming a country like India, con
its size and diverse population, requires a
humanistic approach to reform that con-
siders the interloping factors of culture, en-
vironment, policy-making, and more. A
nation’s greatest asset in doing this is its
human resources, which are a crucial indi-
cator of its potential for growth. The good
news is that the momentum, stability, y
political will for monumental transforma-
tion does exist in India. The next step in
creating a sustainable human economy is
to build partnerships that realize the full
potential of citizen participation.
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https://blogs.worldbank.org/ppps/covid-19-
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bennett, C., & Howlett, METRO. (1992). The lessons
of learning: Reconciling theories of policy
learning and policy change. Policy Sciences,
25, 275-294.
Debroy, B., & Jhurani, D. (2020). Reason and re-
forma: How policy reforms have shaped India.
AF Press.
Alentar, v., Vagliasindi, METRO., & Gorgulu, norte.
(2022). The effectiveness of infrastructure in-
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