Coalition Government and Economic Reforms - History

Explained: - By Indian Express

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