Reforms without bombast: Modi govt streamlines processes

Gopal Krishna Agarwal,

 

Modi Government in the last 10 years has initiated several steps to streamline processes, repeal redundant laws and regulations and eliminate discretion.

 When, it comes to economic reforms, in our obsession to look for big-bang, news-worthy headlines we tend to miss out on seemingly smaller developments. Media and the chatterati look for hotly contested issues, where passions run high and the political economy of the country makes progress very challenging.

 

An unfortunate consequence of this bias is a lack of fair assessment of the many ways in which the Government is upending the entrenched system of governance. Political corruption at the highest levels was one of the most important issues in the run-up to the 2014 general elections.

 

With the Modi Government taking over the reins in 2014, that variant of corruption was eliminated. Laws and policies are no longer made in return for kickbacks. However, the harassment and corruption at lower-level causing difficulties to businesses and citizens is a different animal altogether.  Recognising the need for a comprehensive, multi-faceted approach to tackle this menace, Modi Government has initiated several measures.

 

Modi Government in the last 10 years has initiated several steps to streamline processes, repeal redundant laws and regulations and eliminate discretion. This has led to marked changes in the way citizens interact with the bureaucracy. The threat of fastening criminal charges on violations of laws, rules and regulations was a threat that facilitated easy extraction of money from businesses.

Minor violations have now been decriminalised by the government and violators can only be made to pay fines. The other area of reform is the repeal of obsolete and redundant laws and regulations. Modi government in last 11 years has repealed over 1500 laws and eliminated over 40,000 unnecessary compliances.

 

Government has tried to use technology and reduce subjective discretion of administration, like in the case of GST reforms making process of registration, filling of returns, assessment and refunds completely online and simplifying the whole process. Direct Benefit Transfers to the beneficiary accounts has removed leakages and corruption from the government welfare schemes.

Single window online permission for businesses through Udyog Mitra initiatives of active State governments is to bring efficiency and reduce bureaucratic interference. Even in case of income tax, where ordinary citizens might have to interact with the bureaucracy, the process has been made completely virtual with E-assessment.

 

While issuing notice under the Income Tax Act, the officer does not know who the notice/assessee is, and the latter does not need to meet any officer to offer explanation, the process is anonymous. There is significant development in the matters of income tax refunds and assessment, which has now been made time bound.

 

Another such development took place in the recent past. In the month of June 2025 Delhi Lieutenant Governor (LG) repealed licensing regulations under section 28(1) of the Delhi Police Act, 1978, for seven specific trades. These include hotels, motels, guest houses, restaurants and eateries, discotheques, swimming pools, video game parlours, amusement parks and auditoriums. Following this, Delhi Police on 28th June issued a gazette notification implementing the directions of the LG with immediate effect.

 

Indian bureaucracy has traditionally enjoyed much power and discretion over daily lives of citizens- be it in their personal space or in running government. This has manifested in arcane and overbearing rules and regulations and the impulse to control outcomes. This power also leads to rent seeking behaviour on part of the individuals in the bureaucratic set-up. It is also typical of any individual or institution that once power, privilege or discretion is enjoyed by it, it will fight tooth and nail to preserve and protect its turf. Delhi Police, despite all its professionalism, could not be assumed to have acted differently. Therefore, it goes to the credit of its political boss, the Home Minister for pushing through this reform.

 

All these efforts are in the right direction but still business community has certain grievances calling for harassment. At policy level lot of things have been achieved by the government, though there is space at the implementation level. People with background in business and finance with foot on the ground, in the implementation structure is sure to bring more efficiency in governance.

 

An economy with regulatory cholesterol, finds it difficult to compete with other dynamic economies in the international arena, regulatory compliances add to the cost of doing business. It is one of the major challenge for the manufacturing sector to be internationally competitive. Therefore, Modi Government had made deregulation a major focus.

 

It has set up a Deregulation Commission for the non-financial sector that will take a comprehensive view of all the regulations and come up with recommendations. As the name itself suggests, the focus will be on doing away with otiose regulations. A similar initiative for the financial sectors is also in the pipeline. NextGen GST reform and Jan Vishwas bill are sure to bring ease of doing business to the business community.

 

A series of such crucial reforms, minus the sound and fury associated with the big measures, is imparting resilience to our economy by making private enterprise more fruitful. The cumulative impact of these steps is much more significant than only big steps that any government might take. Modi Government has always believed that reform is a process and not an event and its working shows deep commitment to this belief. The most recent quarterly GDP growth of 7.8 per cent is a vindication of government’s philosophy on reforms.

 

Gopal Krishna Agarwal

National Spokesperson of BJP

अर्थव्यवस्था को नई गति प्रदान करेगा जीएसटी रिफॉर्म

 गोपाल कृष्ण अग्रवाल,

वर्ष 2017 में जब जीएसटी कर प्रणाली को लागू किया गया था तो प्रधानमंत्री नरेंद्र मोदी ने संसद के पटल पर कहा था कि यह भारत की आर्थिक आजादी का दिन है। आज भारत की एकता और अखंडता का प्रतीक 'एक राष्ट्र एक कर' लागू किया गया है। उससे पूर्व यूपीए की सरकार ने कई बार प्रयास किया था कि जीएसटी लागू किया जाए लेकिन वे सफल नहीं हुए। मोदी सरकार आने पर प्रदेशों को आश्वासन दिया गया कि केंद्र हर वर्ष 14% बढ़ोतरी के मापदंड के साथ प्रदेशों को जो कुछ भी कर में क्षति होती है तो उसे केंद्र पूर्ण करेगा। इस पर प्रदेशों और केंद्र के लगभग 16 करों को समाहित करके एक कर प्रणाली देश में लागू करने में केंद्र सफल हुआ।

मोदी सरकार ने शीघ्र जीएसटी लागू ही नहीं किया बल्कि केवल पांच वर्ष में उसे तकनीकी रूप से सरलता से स्थापित भी कर दिया। आज हर महीने सामान्यतया 2 लाख करोड़ रुपए से भी अधिक की कर आपूर्ति हो रही है, जबकि सरकार लगातार कर घटाती भी जा रही है। जीएसटी के अंतर्गत प्रदेश एवं केंद्र को सीजीएसटी/एसजीएसटी में 50/50 प्रतिशत कर का हिस्सा मिलता है और जो इसके अलावा केंद्र के पास आइजीएसटी के रूप में कर आता है उसका भी लगभग 41 प्रतिशत हिस्सा केंद्र प्रदेशों को दे देता है। इस बार नेक्स्ट जेन जीएसटी रिफार्म द्वारा सरकार ने रेट ही कम नहीं किया बल्कि स्लैब भी कम कर दिए हैं। अब केवल दो स्लैब ही रखे हैं। आमजन की रोजमर्रा की जरूरत की चीजों पर या तो टैक्स जीरो है या 5 प्रतिशत ही। बाकी चीजों पर 18 प्रतिशत कर है। 99 प्रतिशत सामान इन दो स्लैब में ही आ जाता है। इन रिफार्म द्वारा सरलीकरण की व्यापक प्रक्रिया लागू की गई है। नए व्यापारियों का जीएसटी रजिस्ट्रेशन मात्र तीन दिन में कर दिया जाएगा और कर दाताओं के लगभग 90 प्रतिशत कर वापसी तुरंत कर दिए जाएंगे।

व्यापारी वर्ग इनवर्टेड ड्यूटी स्ट्रक्चर से परेशान रहते थे। उसकी विसंगतियों को भी खत्म किया गया है। जिन उत्पाद प्रणालियों में इनपुट टैक्स क्रेडिट की समस्या थी, उन विसंगतियों को भी काफी हद तक दूर किया गया है। अब जीएसटी नेक्स्ट जेन सुधार केवल सरलीकरण ही नहीं बल्कि अर्थव्यवस्था के लिए सकारात्मक सुधार भी लेकर आए है। प्रधानमंत्री नरेंद्र मोदी ने लाल किले की प्राचीर से देश को जीएसटी सुधारो के माध्यम से तोहफा देने की जो घोषणा की थी वह अब 22 सितंबर को नई जीएसटी सुधार प्रणाली लागू होने के साथ पूरी हो जाएगी। इस परिवर्तन के बाद देश विकसित भारत के लक्ष्य की तरफ और सशक्त कदमो से आगे बढ़ेगा।

सरकार की पैनी नजर इस पर भी रहेगी कि कम हुई कर दरों का लाभ व्यापारी वर्ग आम जनता तक अवश्य पहुंचाए। व्यापार के सरलीकरण में सबसे ज्यादा चुनौती अनुपाल के लिए होती है। देश में वैश्विक व्यापार क चुनौतियों के मद्देनजर, यह कर सुधार भारत की अर्थव्यवस्था को आत्मनिर्भर बनाएगा और प्रधानमंत्री के स्वदेशी के आह्वान को भी पूर्ण गति प्रदान करेगा।

यह सरलीकरण ही नहीं बल्कि अर्थव्यवस्था के लिए सकारात्मक सुधार भी है। सरकार ने रेट ही कम नहीं किए, बल्कि स्लैब भी कम कर दिए हैं।

गोपाल कृष्ण अग्रवाल

फैलो मेंबर, द इंस्टीट्यूट ऑफ चार्टर्ड अकाउंटेंट ऑफ इंडिया

If India stopped buying Russian oil, China would gain and global prices would go up

Gopal Krishna Agarwal,

The West should thank India for buying Russian oil and stabilising the global market.

India imports around 85-90 per cent of its crude oil requirements. Its crude import bill was approximately $132-140 billion for FY 2023-24. It is evident that even a minor change in the price of crude can have a large overall effect on the balance of payment position. India does not have the luxury of printing dollars. It must always take steps based on the best interests of its 1.4 billion citizens.

In 2022, the world was on the brink of an oil shock after the Russia-Ukraine war. Panic hit the oil markets and crude prices soared to $137 per barrel. The West had two choices — ban Russian oil completely and let the prices explode or find other ways to keep the market functioning. The G7, therefore, introduced a price cap — $60 per barrel — to keep the supply flowing. Any country could buy Russian crude legally as long as it was below that price.

Before the war, Russian crude oil import was negligible for India, just 0.2 per cent of imports. In 2024-25, 36-40 per cent of our oil came from Russia. And it was vital for stabilising global oil prices. The US publicly supported India’s move. In 2022, US Treasury Secretary Janet Yellen said, “We’re happy for India to buy as much Russian oil as it wants… even above the cap…” Former US Ambassador Eric Garcetti said that the US wanted someone to buy Russian oil at the cap.

Russia’s crude production in 2024-25 averaged around 10.45 million barrels per day (bpd), which is about 10 per cent of global supplies. Of this, 4.2-4.5 million bpd was exported. Currently, oil demand and supply are fairly balanced. However, in case Russian supplies were disrupted, crude prices would go up by $10-15 per barrel. The oil market has seen such volatility every time there was talk of Russian flow disruption due to sanctions.

India’s balancing role

India has always respected global compulsions. But, strategically, India’s energy security is also linked to regional geopolitics. In 2007, Iran supplied 12 per cent of our crude. After being sanctioned over its nuclear programme, India stopped buying from Iran. Meanwhile, China still buys 1.4 million bpd from Iran despite sanctions. Between 2022 and 2025, more than 40 per cent of Russia’s crude exports went to China. And if India stopped buying crude from Russia, Moscow would sell more oil to China at bigger discounts. The net result would be that China will be at a greater advantage and global crude prices will go up.

In this global turmoil driven by protectionism and trade and tariff wars, India is treading its path carefully, balancing regional and global geopolitics with resilience. The Indian government’s prudent policy decisions are being appreciated across the globe and bringing positive results. Recently, S&P Global has also raised India’s long-term sovereign credit rating to ‘BBB’ from ‘BBB-‘, with short-term rating upgraded to ‘A-2’ from ‘A-3’. The stable outlook reflects confidence in India’s strong economic fundamentals, prudent policy management, and effective monetary policy — a recognition of India’s growing financial resilience.

The successful handling of the economy by the Narendra Modi government has imparted resilience to the economy, ensuring it can bear economic shocks. We are the fastest-growing major economy, our fiscal position is improving, and there is increasing efficiency in government spending. All these means India will be able to negotiate as a partner and won’t be a pushover.

India’s imports of Russian crude oil averaged 1.7–2 million bpd in 2024-25, accounting for 36-40 per cent of its total crude imports. The average discount on Russian crude was approximately $3.5 per barrel, compared to Middle Eastern crude, which was costlier by about $4-5 per barrel. This translated into estimated savings of $7-10 billion on India’s import bill, including $2.3-3.8 billion (Rs 19,000-31,500 crore) in direct savings from lower prices compared to alternative suppliers. In addition, India avoided a potential $9-11 billion increase in its import bill by helping stabilise global supply and preventing price spikes.

If India stopped buying Russian oil, it would be forced to compete in crowded West Asian markets, likely causing a sharp rise in global crude prices. By importing Russian oil, India is not just reducing its own costs but also helping to balance the global oil market.

Gopal Krishna Agarwal is the National Spokesperson of BJP. 

Modi govt has learned from past FTAs. Its priority now is building a manufacturing powerhouse

 Modi govt has learned from past FTAs. Its priority now is building a manufacturing powerhouse

Gopal Krishna Agarwal,

With the emergence of new geopolitical realities arising out of the unilateral announcement of reciprocal tariffs by President Donald Trump, the US cannot be considered a very reliable trade partner. And, even if a bilateral trade agreement with the US is concluded, uncertainty about the country’s future actions remains. 

Trump had announced a 90-day window for tariff negotiations, which ended on 9 July. He later extended the deadline to 1 August and sent letters to 14 countries informing them about new tariff rates. 

India and the US are currently holding talks over a trade agreement, with the sixth round expected to be held in August, when American trade officials will visit India. This shows India’s importance as a trading partner for the US. 

There are other ambiguities around Trump’s administrative actions, and no one is sure of the outcome of US courts’ and the Senate’s interventions. Therefore, prudence demands that we go slow and wait for countries such as China, Japan, and Vietnam to negotiate with the US. India, meanwhile, can build strategic partnerships with other countries and blocs to prevent overdependence on the US market. The EU is expected to be stable and predictable in its approach, but India has to deftly negotiate the bloc’s impulse to impose non-tariff barriers under the garb of human and labour rights, environment, climate change etc. 

The World Trade Organization is virtually defunct and rule–based trading order looks like a thing of the past. Every country, including India, is negotiating Free Trade Agreements (FTAs) with multiple other nations to protect its export market. In May, India concluded FTA negotiations with the United Kingdom, while talks with the EU and the US are in advanced stages. However, our approach to FTAs cannot be a simple replication of the old template and must be influenced by outcomes of the not-so-successful past trade agreements, such as the ASEAN-India FTA and the Regional Comprehensive Economic Partnership (RCEP) negotiations. 

Past mistakes

The global trade and financial architecture that emerged in the post-World War 2 period supported a rule-based trading system. It allowed several poor countries to overcome the limitations of a small economy and tap into the export market. As a result, these countries — like South Korea, Taiwan, and China — were able to experience above–average growth rates for a long period of time. We missed riding the bus of free trade due to earlier policy misadventures like quota, license raj of Congress–led governments. Now our government is committed to make India a manufacturing powerhouse, but the bus of free trade has hit major road bumps. 

India is focusing on ensuring competitiveness of domestic industry right now, as there is absolutely no substitute for building the manufacturing sector. Past FTAs failed to yield much benefit because they exposed domestic industries to global competition without strengthening the manufacturing ecosystem through infrastructure development, availability of land and power, and ease of compliances. India needs structural reforms to reduce input costs. The Modi government’s focus is on slashing costs of land, power, logistics, compliances, and raw material to enhance global competitiveness of our manufacturers. Several steps have been taken in the last 11 years by the Centre, but a lot remains to be done at the state–level, as most of these areas are basically dependent on state policies. 

Micro, small, and medium enterprises (MSME) is an important sector for employment generation and integrating our manufacturing into global and regional supply chains. Therefore, before entering into any agreement, the government is ensuring full support to MSMEs. The MSMEs also have a lot to do at their end, since they face difficulty meeting international standards, which limits their competitiveness. It is important for this sector to build institutional capacity and technical know-how to follow global trade standards. Quality Control Order (QCO) was brought with this intention, but it has emerged as another challenge for Indian industries. QCOs hinder the import of raw materials and intermediate products required for manufacturing, creating a negative impact on the domestic production of goods, and reducing India’s export competitiveness. Therefore, there is a need for a more sector-specific approach to QCOs.

Our recent experiences with custom duties have shown that there is a conflict between imposition of countervailing duties and the interests of MSMEs. Such duties tend to favour big domestic producer industries at the cost of MSMEs which are the users of products that are subject to countervailing duties. So FTAs provide an opportunity for strategic tariff reduction on intermediate goods for the betterment of Indian industries. India will take a data-driven approach in determining tariffs to ensure that they don’t disrupt supply chains or discourage innovation and investment.

Agriculture sector protection, intellectual property rights, and public procurement are critical and form an important part of tariff negotiation. Hence, their interest is non-negotiable. Any concession given in these areas will be carefully evaluated and bargain precisely measured. We know that if India gives concession to one country or region, others would demand similar treatment and privileges. India should not bend over backward to seek concessions for movement of its citizens across borders as service providers. The negotiating countries use this demand to get concessions from India. Indian talent is in huge demand globally and other countries would anyway need Indian expertise. Otherwise, India can harness its human resources and potential to its own advantage.

An opportunity 

Major economic decisions are not made in the fog of uncertainty. Global economic uncertainties are not fully comprehensible and controllable, therefore India’s focus is on reducing domestic policy uncertainties. It will surely boost private capital formation. India also has to attract massive foreign capital in export-oriented sectors. But this is easier said than done. The country’s image as a destination for foreign capital faces challenges due to certain decisions of the past government, especially the Vodafone tax dispute. India still has significant work to do in areas like judicial reforms for contract enforcement.

Trade considerations cannot be fully separated from strategic considerations. The China+1 and risk diversion strategy of global manufacturers are an opportunity for India to benefit from current geopolitical challenges, and therefore the country’s focus in FTA negotiations is to counter China. Since China is a major challenge for India in multiple spheres, teaming up with countries at the receiving end of China’s irredentist and mercantilist policies is a viable option. This also means that India should still work for multilateral trade deals because third-world countries get a level playing field as well as some preferential treatment under multilateral trade platforms such as WTO.

Gopal Krishna Agarwal is the National Spokesperson of BJP.