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2 January 2026|The Indian Express
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EconomyPolity & GovernanceEDITORIAL

India's Growth Trajectory: The Imperative of Internal Reforms

Sustained economic growth hinges on India's commitment to continuous internal reforms.

Background Context

India's economic journey since independence has been marked by various phases of policy shifts, from a socialist-leaning, import-substitution model to the liberalization reforms of 1991. While the 1991 reforms opened up the economy and spurred growth, subsequent decades have highlighted the need for deeper, 'second-generation' reforms to address structural bottlenecks in governance, factor markets (land, labor, capital), infrastructure, and human capital. The current global economic landscape and India's aspiration to become a developed nation by 2047 necessitate a renewed focus on these internal changes.

This brief editorial underscores the necessity of continuous internal reforms for India to achieve sustained economic growth and realize its full potential. It suggests that while external factors and global positioning are important, the true engine of growth lies in addressing domestic structural issues. The article implicitly calls for reforms in areas such as governance, ease of doing business, infrastructure, and human capital development to create a more conducive environment for investment and productivity. The core message is that India's economic future depends on its ability to implement difficult but essential internal changes.

Key Facts

1

Need for continuous internal reforms for sustained economic growth

Latest Developments

The present government has emphasized 'ease of doing business' through initiatives like the National Single Window System, 'Make in India' for manufacturing, and significant infrastructure push via PM Gati Shakti. Reforms in labor codes, agricultural marketing, and privatization efforts are also ongoing. However, the editorial suggests that despite these efforts, a continuous and more comprehensive approach to internal reforms is crucial to unlock India's full potential and ensure sustained, inclusive growth.

Editorial Analysis

The author asserts that India's sustained economic growth and global standing are contingent upon its unwavering commitment to internal reforms, emphasizing that domestic structural changes are the primary drivers of progress.

Main Arguments:

  1. While external factors and global positioning are important, the fundamental strength of India's economy and its ability to achieve sustained growth depend on addressing internal structural inefficiencies.
  2. Continuous reforms in areas such as governance, regulatory frameworks, infrastructure, and human capital are essential to enhance productivity, attract investment, and create a more competitive economic environment.
  3. These internal reforms are crucial for India to fully capitalize on its demographic dividend and integrate effectively into the global economy, ensuring long-term prosperity.

Conclusion

The editorial concludes that India's future economic success hinges on its political will to implement and sustain comprehensive internal reforms, which are the bedrock of lasting prosperity.

3 Key Concepts to Understand

This article covers important concepts like Economic Growth (Sustained Economic Growth), Ease of Doing Business and 1 more. Understanding these will help you answer exam questions better.

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