As a turbulent year for India's economy draws to a close, marked by challenges for labour-intensive sectors from global trade tensions, a call for decisive action emerges. Drawing inspiration, experts and commentators are putting forth a bold wish list for the government's agenda in 2026, aiming to steer the nation towards greater fortune.
Reimagining Economic Strategy: Trade, Currency, and 'Make in India'
A central proposal involves a fundamental reassessment of the 'Make in India' initiative. Critics argue its ever-expanding list of over 25 incentivized industries dilutes its strategic impact. The suggestion is to downsize and sharpen its focus, with a paramount goal of reducing India's dependency on China. This is underscored by a bilateral trade deficit hovering around $100 billion, with data indicating potential under-invoicing of Chinese imports.
Complementing this, a radical idea for the Reserve Bank of India (RBI) has been floated by former chief economic advisor Arvind Subramanian: to let the Indian rupee find its level around ₹100 to the US dollar. This, he argues, would aid exporters and counter the currency strategies employed by China and East Asia to capture foreign markets. The move is seen as aligning policy with market forces.
Furthermore, a shift in public mindset is advocated. True nationalism, the argument goes, should mean consciously choosing Indian-made products or alternatives from countries other than China, moving beyond the lure of cheaper prices.
From Bureaucracy to Handlooms: Ground-Level Reforms
The wish list extends deep into domestic policy and social attitudes. For India's vast informal and labour-intensive sectors, a rebranding is proposed: 'Make in India' should become 'Hand-Make in India'. A simple yet significant reform suggested by Laila Tyabji of Dastkar is the removal of GST on handlooms to reduce paperwork and final costs.
The celebrated Ease of Doing Business ranking should be renamed to the more honest 'Unease of Doing Business', creating a constant focus on simplifying interactions with the government. While online tax payment is praised, the system remains complex and the tax base narrow, a situation not helped by recent income threshold hikes.
Arvind Singhal of Technopak calls for a fundamental reform of the bureaucracy, especially the IAS/IPS/IRS, to align with India's present and future needs rather than its colonial past. The RBI under Governor Sanjay Malhotra is noted as a positive model, having scrapped 5,673 circulars and eased norms for foreign investment in banks.
Addressing Inequality and Inefficiency
The list tackles social disparities head-on, proposing an inheritance tax—common in most G8 nations—for a country as unequal as India. It also urges those with disposable income to spend and donate more, viewing higher wages for employees as an investment that can turn workers into customers and boost demand.
On the ground, inefficiency persists. Examples range from the excessive paperwork observed at airport security registers to stark contrasts in work regulations. While Indian pilots enjoy globally generous 48-hour weekly rest rules, many companies demand 13-hour workdays, six days a week.
Alarmingly, labour code revisions threaten protections for construction workers, replacing site inspections with "web-based" compliance—a move deemed nonsensical for workers in often pre-Dickensian conditions. The argument is clear: well-regulated work conditions should not be a privilege for only a few.
While acknowledging that much of this agenda may seem ambitious, the spirit of the new year invites such optimism. The collective hope is for a government that thinks more like a service provider and less like an overlord, tackling these multifaceted challenges to unlock India's true economic potential.
