Business · India Bureau
Weak governments better at reforms, says industry leader Forbes
Industrialist Naushad Forbes argues that India requires comprehensive economic reforms and lower trade barriers to revive manufacturing and boost growth. He contends that governments with limited political capital often prove more effective at implementing difficult structural changes.
LSN India ·
Naushad Forbes, a prominent business leader, has argued that weaker governments historically demonstrate greater capacity to implement critical economic reforms, a perspective he believes is relevant to India's current economic challenges.
Forbes emphasised that India needs deeper structural reforms across its economy to address sluggish growth and revive key sectors. He highlighted the necessity of reducing trade barriers, pursuing greater deregulation, and creating conditions that encourage private investment and manufacturing expansion.
The industrial magnate's observations suggest that governments operating with limited political leverage sometimes find it easier to implement unpopular but necessary reforms that stronger administrations might resist due to political considerations. This paradox, he implied, could offer lessons for policymakers navigating India's economic revival.
His remarks come as India's manufacturing sector and export performance remain subdued, with economists pointing to structural impediments and regulatory constraints as key obstacles to growth. Forbes' commentary underscores the ongoing debate among India's business community about the pace and scope of economic liberalisation needed to restore investor confidence and accelerate expansion.