The leading lights of Indian industry have of late been forthright in their criticism of the government, particularly on grounds of a “governance deficit”. Some have even addressed an open letter to Prime Minister Manmohan Singh. It is hard to recall another period when top industry figures thrust themselves out so prominently in criticising the government. This speaks of the changed culture of governance in India for the better, and the extension of democratic freedoms which proportionately takes away from the image of an all-powerful state before which other institutions must learn to bow.
Considering this, it is surprising that the businessmen’s critique has been non-specific and sweeping. The slowing down of decision-making has been suggested but without betraying an understanding of possible causes that lie within our political system.
Given the more open climate of today, the representatives of big industry have clearly passed up a chance to voice their objections with precision. Reliance Industries’ Mukesh Ambani, who spoke at the India Economic Summit in Mumbai on Sunday, appears to be an exception in this regard. He put his views across with candour and with restraint, as he called for a “dramatic shift in governance”. It is noteworthy that, unlike some of his peers, he did not complain of a “governance deficit”, an over-used rubric that signifies very little.
Mr Ambani makes two essential points. The first is that being a democracy cannot be an alibi for paralysis. Which means the political system is not delivering consensus on doables. We have seen several sessions of Parliament being washed away in acrimony between the treasury benches and the Opposition. The Reliance chief’s criticism is fair. His speech is clearly an implied appeal to both sides of the divide. The Prime Minister cannot take refuge behind urging industry to eschew “negativism”, as he did recently. His side in Parliament must work harder to take the Opposition on board. The Opposition too will serve the country better if it didn’t insist on barren brinkmanship and making truculence its hallmark.
Mr Ambani has also called for aligning the policies of the Centre and the states. Here he is on less sure ground. Allowing for the nation’s vast diversities, our Constitution permits autonomy to the states in many areas. If Mr Ambani means that the whole country should become like Gujarat — with tax breaks for industry but a relatively uncertain social sector record — then he could be opening up a debate. But at least he has spoken clearly. The government would do well to form a group of senior officials to discuss with industry the socio-political issues troubling them to better furnish the delivery systems for the 21st century that Mr Ambani has alluded to.