Crises and Emergencies, Trigger for big reforms

Crisis and Emergencies has always left the world in despair at its wake. But many humanists and analysts are of the
opinion that it creates an opportunity for the human world to rise from the ashes like a phoenix. History also bears
witness to such big reforms after crisis has struck either be it in Americas, Europe or in Asia Pacific region. There
are many examples like Japan after World War II, France after French revolution and even United states after Civil
wars, there has always been big reforms post the crisis which has paved the way for stronger economic and social
conditions.

India has been no different, as we have also seen big reforms like 1991 BoP crisis which led to liberalization and
1992 Securities scam leading to dematerialization of stock along with electronic trading. The food scarcity in 1960s
led to green and white revolution in country making India the world’s biggest milk producer. There are many exam-
ples so forth which makes us believe there is always a silver lining to any crisis or emergency.

Recently, Covid-19 has given India a period to implement various wide ranging structural reforms in the country.
Key initiatives taken by government of India are PLI scheme for select sectors to boost the competitiveness of do-
mestic manufacturing, incentivizing scaling of manufacturing operation while lowering compliance burdens, various
agricultural reforms, push toward privatization of PSUs in non-strategic sectors etc. which has helped country
weather the inflation rate going high worldwide. Therefore, one can identify this crisis and emergencies as key trig-
ger for socio-economic reforms.