Washington: Reforms are unlikely before the 2014 elections, Prime Minister's Economic Advisor Kaushik Basu has suggested. Speaking at the US-based think tank Carnegie Endowment meet on Wednesday, Basu said relatively less important bill might go through Parliament. He was addressing concerns expressed by US corporates on some recent decisions of the Indian government.
Basu blamed the slowdown in decision making on the spate of recent corruption related scams saying the bureaucracy doesn't want to take risks now. Basu also blamed coalition compulsions for policy paralysis.
He, however, said things will look up and growth will pick up after the 2014 polls.
"We are going through a difficult year. (After 2014), you would see a rush of important reforms and after 2015 India would be one of the fastest growing economies of the world. The new government, if in a majority, would start with the reforms in a big way because there is a sense that it needs to pick up," Basu said.
India, he said, also needs to address the issue of massive subsidy leakage and that of poor infrastructure.
India, Basu said, acted on both the fiscal and monetary policy. Finally, India too is impacted by the global economic slowdown.
"We are going through a difficult year," Basu, who is accompanying Finance Minister Pranab Mukherjee to the IMF-World Bank meet, said, adding that India is trying to go back to fiscal consolidation.
(With additional information from PTI)
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