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Coalition Government and Economic Reforms - History

Explained: - By Indian Express


Lok Sabha 2024 Election results

Can Coalition Governments Derail Economic Reforms in India?


Coalition Government Dynamics in India

  • Formed when no single party wins a majority of seats (272) in the Lok Sabha.

  • Multiple parties come together to share power and form a government.

  • The leading party negotiates with other parties to form a power-sharing agreement, outlining policy goals and cabinet positions.

History Shows Both Successes and Challenges

  • Past two governments with BJP majority were expected to deliver strong economic reforms.

  • However, reforms like land acquisition and farm bills faced resistance.

Coalition Governments and Bold Reforms

  • P V Narasimha Rao minority government undertook significant reforms: The LPG Reforms

  • Ended centralized planning.

  • Opened Indian economy to global competition.

  • Joined World Trade Organization.

  • Deve Gowda government's "dream budget" cut taxes.

  • Atal Bihari Vajpayee-led NDA government:

  • Introduced Fiscal Responsibility & Budget Management (FRBM) law.

  • Advanced disinvestment of PSUs.

  • Launched PM Gram Sadak Yojana for rural infrastructure.

  • Introduced Information Technology Act (2000).

  • Manmohan Singh-led UPA government:

  • Built on Sarva Shiksha Abhiyan with Right to Education Act.

  • Introduced Right to Information Act for transparency.

  • Introduced Right to Food Act.

  • Launched Mahatma Gandhi National Rural Employment Guarantee Act (MG-NREGA).

  • Deregulated fuel prices.

  • Initiated work on direct benefit transfers, Aadhaar, and GST.


Challenges of Coalition Governments

  • Balancing the priorities of different parties can lead to delays or watering down of reforms.

  • Maintaining coalition stability can be difficult, especially if there are disagreements on policy.



Coalition Government and Economic Reforms


Coalition Government and Economic Reforms

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