With the fundamentals of the economy sending ro bust signals, doubts are often raised whether this is the right time to speak of next generation economic reforms. The pertinent point here perhaps is that so much yet remains to be done on the reforms front. To go by the examples given by the Raghuram Rajan Committee, on the retail side of financial services, there is large scale exclusion.
For many in the rural areas, the moneylender is still the only point of solace so much so even the Reserve Bank of India (RBI) is contemplating to lend him a measure of legitimacy. On the corporate side, our products are not sophisticated enough to appeal to corporates across the global spectrum.
Of course, it is also possible that properly reformed, the financial sector can generate jobs and produce multiplier effects that take care of both inclusion and growth. Since we do not have an economic urgency on hand, it is perhaps the right time to start thinking of the reforms per se. |
