{"id":30310,"date":"2022-09-13T16:24:26","date_gmt":"2022-09-13T10:54:26","guid":{"rendered":"https:\/\/plyinsight.com\/?p=30310"},"modified":"2022-09-13T16:28:02","modified_gmt":"2022-09-13T10:58:02","slug":"too-many-flip-flops-in-policy","status":"publish","type":"post","link":"https:\/\/plyinsight.com\/hi\/too-many-flip-flops-in-policy\/","title":{"rendered":"Too many Flip-Flops in Policy"},"content":{"rendered":"

India is the second largest producer of wheat but it has not been a major exporter of grain. The Union commerce ministry planned a delegation to nine countries to promote & export Indian wheat.<\/span><\/p>\n

Just a day before the delegations were to leave, the government abruptly announced a ban on all wheat exports with immediate effect.<\/span>
\nClarifications trickled in: Orders that were already signed by private traders would be allowed to be shipped. Also, government-to \u2013government deals would continue. The latest details \u2013 that the country which bought wheat from India could only do so for domestic consumption- is a fair decision though it should have been announced right up front.<\/span><\/p>\n

Indian policy-making and policy announcements for the last few years have been made in haste and then modified or revoked equally hastily. Notifications and clarifications keep coming out over weeks and months. Some of them are contradictory and need further clarifications.<\/span><\/strong><\/p>\n

This has happened in the case of coal procurements\/imports, telecom, Covid-19 vaccine exports, e-commerce and even electric vehicles vs internal combustion engine announcements by different high-level functionaries. <\/span><\/p>\n

In the case of major laws such as the Goods and Service Tax (GST) and the Insolvency and Bankruptcy Code (IBC), notifications, changes, amendments and clarifications were a regular feature long after the original laws were passed. In the case of the IBC, further modifications are not ruled out. In the case of GST, rates continue being tinkered with despite half a decade having passed since the original rollout.<\/span><\/p>\n

It is nobody’s case that any policy will be perfect from day one. It also make sense to modify and refine a policy based on feedback over time.<\/span><\/p>\n

However, the impression that is gaining ground is that in India, policy announcements are often done much before enough discussion and debate has taken place. The drafting of rules is taking place increasingly in isolation without taking enough feedback from people who will be affected by it. And far too many announcements are focused on the short term and are reactionary in nature instead of being well-thought-out strategies.<\/span><\/strong><\/p>\n

Policy rollbacks and modifications happening too frequently spook businessmen- both domestic and global. Any investor needs to be sure of the policy direction and its stability before working out his or her plans and putting big money on the ground. The united progressive Alliance government was often accused of policy paralysis because endless debates ensured that no policy was being formulated on time.<\/span><\/p>\n

In the case of the current administrations, the problem is the reverse- policy pronouncements come in thick and fast- only to be modified or reversed equally rapidly.<\/span><\/p>\n

\n

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India is the second largest producer of wheat but it has not been a major exporter of grain. The Union commerce ministry planned a delegation to nine countries to promote & export Indian wheat. 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