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Currently, India's public finances are showing a jolly figure. The figure's seems good due to lower inflation and fiscal deficit. The consumer price index (CPI) inflation has dropped from 10.9% as seen in 2013 to 5% in October 2015 and the wholesale price index (WPI) is hovering in a negative territory.
One of the key factor for this mark improvement in inflation and fiscal deficit is substantial decline fall the crude prices. The prices of the crude oil have fallen to around US$ 43 from more than US$ 100 few years back.
But given the volatility in the crude prices one cannot expect this trend to last long. The falling crude prices, gives the much needed boost to the economy. While this would be ripe time for the reforms to take place, however the same do not seem to be happening.
As reported in Mint, International Monetary Fund (IMF) has come out with a new study or paper which states that the new reforms become necessary once the economy evolves. Since the era of Atal Bihari Vajpayee, no significant reforms have taken place in the economy. The author has given classic example of Malaysia's growth. The economy went through different waves of reforms over the period of time, and this has paid off quite well. However, to take India to another level a new wave of reforms is need for an hour.
The National Democratic Alliance (NDA) government came in with a lot of promises in relation to reforms. People had a lot of expectations from the new government to deliver on the reforms front. However, the expectations are slowly fading away as the pace of reforms has not been encouraging.
The government has failed to deliver the much needed reforms at a quick pace. The important bills such as 'Goods and Service Tax', 'Land Acquisition Act' and 'Labour Reforms' are yet to be cleared. The same have been getting delayed in the parliament so far.
The recent economic data for exports and domestic demand has seen a phase of consolidation. There is no good time than now to start the reform process and boost the economy. What we fear is that delay on this front, could lead to the situation when things might just go out of control. We have seen that happening in past. As they rightly say, history repeats itself. Or will it not? Time will tell
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