Richard Rossow, Senior Adviser and Chair on India and Emerging Asia Economics at the Center for Strategic and International Studies (CSIS), has raised concerns over the pace of economic reforms under the third term of the National Democratic Alliance (NDA) government. In a recent interview, Rossow remarked that “NDA 3.0 has been relatively quiet on reforms,” especially when compared to the first two terms of Prime Minister Narendra Modi’s administration.
Rossow, who has tracked India’s policy landscape for over 25 years, believes that the current coalition setup and changes in key Cabinet portfolios may be contributing to the slowdown. He also emphasized that India must accelerate its reform agenda to meet its ambitious 2047 goals and position itself as a global manufacturing and investment hub.
🧭 Reform Trajectory: Comparing NDA’s Three Terms
Rossow’s analysis draws a stark contrast between the reform intensity of NDA’s first term and the current phase. While NDA 1.0 introduced landmark changes such as the Goods and Services Tax (GST), bankruptcy code, and liberalized foreign direct investment (FDI) norms, NDA 3.0 has yet to deliver comparable breakthroughs.
| NDA Term | Reform Highlights | Reform Momentum |
|---|---|---|
| NDA 1.0 (2014–2019) | GST rollout, Insolvency & Bankruptcy Code, FDI liberalization | High |
| NDA 2.0 (2019–2024) | Corporate tax cuts, farm laws (later repealed), PLI schemes | Moderate |
| NDA 3.0 (2024–Present) | Insurance reforms proposed, nuclear liability law under review | Low |
Rossow noted that while NDA 2.0 slowed down initially, the COVID-19 pandemic prompted a wave of fiscal and regulatory interventions. In contrast, NDA 3.0 has yet to show urgency despite favorable macro conditions.
🏛️ Coalition Dynamics and Cabinet Reshuffles
One of the factors Rossow cited for the reform lull is the coalition nature of NDA 3.0. However, he cautioned against overemphasizing this as a barrier. Parties like the Telugu Desam Party (TDP) and Janata Dal (United) have historically supported reformist agendas.
“TDP has been probably more reformist than any party in India over the last 25 years,” Rossow said.
He added that the real challenge may lie in Cabinet reshuffles, where key ministries are now led by regional leaders who may prioritize state-level issues over national policy reforms.
| Factor | Impact on Reform Agenda | Rossow’s Assessment |
|---|---|---|
| Coalition Government | Moderate influence | Not a major roadblock |
| Cabinet Changes | High impact | May dilute reform focus |
| Regional Priorities | Shift from national to local | Slows central policy rollout |
📉 Missed Opportunities and Pending Reforms
Rossow highlighted several areas where reform momentum has stalled, including land acquisition, labor laws, and privatization. He also pointed to the need for deeper insurance sector reforms and amendments to the Civil Nuclear Liability Law.
| Reform Area | Status Under NDA 3.0 | Strategic Importance |
|---|---|---|
| Land Acquisition | No major progress | Critical for infrastructure |
| Labor Law Simplification | Implementation delays | Boosts formal employment |
| PSU Privatization | Limited traction | Improves efficiency |
| Insurance Sector | Reforms proposed | Enhances financial inclusion |
| Nuclear Liability Law | Under review | Attracts foreign investment |
Rossow believes that unlocking these reforms is essential for India to attract global capital and compete with China in manufacturing and supply chain integration.
🧠 India@2047: Reform Blueprint for Viksit Bharat
Rossow’s remarks align with broader discussions around India’s 2047 vision—transforming into a developed economy by its centenary of independence. He emphasized that reforms must be front-loaded to achieve this goal.
“India must position itself to take on China in manufacturing and other areas. That requires bold reforms now,” he said.
He also supports the idea of a 100-point reform blueprint, covering areas like intellectual property rights, MSME formalization, GST rationalization, and rural infrastructure.
| Reform Pillar | 2047 Goal Alignment | Urgency Level |
|---|---|---|
| Manufacturing | Increase GDP share to 25% | High |
| MSME Formalization | Boost employment and exports | High |
| GST Overhaul | Improve tax efficiency | Moderate |
| IP Governance | Drive innovation | High |
| Rural Infrastructure | Inclusive growth | High |
Rossow believes that India’s demographic dividend and digital infrastructure give it a unique edge, but policy inertia could squander these advantages.
📊 Investor Sentiment and Global Positioning
Despite the reform slowdown, India continues to attract foreign investment, thanks to its large consumer base and stable macro fundamentals. However, Rossow cautioned that sustained investor interest requires policy clarity and execution.
| Indicator | Current Status | Investor Outlook |
|---|---|---|
| FDI Inflows (FY25) | $78 billion | Positive but cautious |
| Ease of Doing Business | Rank 63 (World Bank) | Needs improvement |
| Manufacturing GVA Share | ~17% | Target: 25% by 2047 |
| Export Growth (YTD) | +6.2% | Slowing momentum |
Rossow also emphasized that India must streamline logistics, reduce compliance burdens, and improve dispute resolution to maintain its global competitiveness.
📌 Conclusion
Economist Richard Rossow’s candid assessment of NDA 3.0’s reform performance serves as a wake-up call for policymakers and stakeholders. While India’s macro story remains strong, the lack of bold reforms in the current term could hinder its long-term aspirations.
With key reforms pending and global competition intensifying, Rossow urges the government to accelerate its policy agenda and leverage its political capital to deliver transformative change. As India marches toward 2047, the next few years may well determine whether it reaches its destination as a developed nation—or falls short due to missed opportunities.
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Disclaimer: This article is based on publicly available interviews and policy commentary as of August 21, 2025. It is intended for informational purposes only and does not constitute investment or political advice.
