While talking to The Times of India, the deputy chairman of India's Planning Commission reveals about steps taken to bring reforms in the country. Excerpts:

What are the key reforms that the government should immediately undertake?

Let us distinguish between "reforms" , which mean changes in the policies or laws, and "executive action" which means taking decisions within the

existing structure or system. Both are important, but for immediate effect right now, I would concentrate on executive actions. The most important

area to act is making sure that implementation of large projects in the infrastructure sectors is accelerated . There are problems related to

environment and forest clearances which could easily be speeded up. Some relate to resolving fuel supply problems for thermal power plants and

dealing with domestic coal shortages and planning for coal imports. We currently have an environment in which the bureaucracy has become

reluctant to take decisions that may become controversial. But mechanisms can be devised to overcome this. We have identified many of these problems

and steps are being taken to address them. I hope this effort will gain momentum. Another important area of executive action relates to

macro-economic management . We have set a target for reducing the fiscal deficit and we must ensure that it is met. This is not a reform - it is

simply doing what we have said we will do. That may include some difficult things, like for example the adjustment in fuel prices, which the Prime

Minister himself mentioned recently. Apart from this, there are "reforms" we must undertake . These don't have an impact on the economy immediately

- their impact is felt over time, but they are also important in the short run because they affect the investment climate, which is depressed at

present. There are several such reforms in the pipeline. FDI in retail is an area where the government has said they are working to build a

consensus. There are very important bills in Parliament, relating to banking and insurance which would send a good signal. Most important of

all is the GST, which would be a major game changer if we can get a consensus among the states. And don't forget Aadhar which is rolling out

very well and can be a game changer in delivery of critical services and benefits.



Do the compulsions of coalition politics make it difficult to pursue tough economic reforms?



Tough reforms are always difficult, even in a single party government since different views will be reflected within the party as they should

be, but in a coalition it is definitely more difficult, by definition.

That is true not just in India but all over the world. 

Some experts and agencies have said that they don't see any meaningful reforms until a new government is in place in 2014. What is your

assessment?



I definitely don't share that view. Those who are getting despondent should remember that better economic performance in the next year or two

does not depend on reforms alone. We grew for five years at 9 percent poverty declined and we have achieved record food grain production. All

this happened even though the "reforms" that people are currently worrying about were not done. Right now, we should focus on reviving the investment

climate and improving implementation of infrastructure projects and bring back rapid growth and job creation.