Monday, July 21, 2025

India’s Biggest Problem is Not Just the Government….! Economist Reveals the Real Hurdle to India’s Growth

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India’s renowned economist and member of the PM’s Economic Advisory Council, Sanjeev Sanyal, has stated that India’s greatest growth challenge is not just the sluggish bureaucracy but also an outdated and sluggish legal system. He asserted that India’s courts, judges, senior lawyers, and bar councils are resistant to reform. This is holding country back from becoming a fast-developing nation.

Sanyal explained that the judiciary still operates with outdated British-era norms, such as extended court holidays and endless delays. The popular phrase “tareekh pe tareekh” reflects how people wait for years for justice, wasting both time and money. He emphasized that unless this outdated system is reformed, India will struggle to become a modern economic superpower.

He also pointed out that while some senior bureaucrats are pushing for innovative approaches, lower-level staff often remain corrupt and inefficient. Many city and state offices suffer from unclear leadership and ambiguous roles, which slows down local governance. According to Sanyal, establishing clear leadership and accountability is essential to fixing these issues.

Several companies and international firms have also voiced concerns about India’s slow judiciary. Global giants like Walmart and Amazon face significant delays in contract enforcement and prolonged legal disputes. In contrast, countries like Vietnam and Bangladesh offer faster approvals and more streamlined processes. Which is why many companies prefer setting up factories and offices there instead of in India.

Recently, India’s Chief Justice DY Chandrachud acknowledged the problem of the judiciary. He pointed at massive case backlog and the urgent need for systemic reform. However, progress remains slow. Although the government wants commercial courts to expedite cases, lawyers’ associations and bar councils often resist new regulations to maintain their influence.

Experts argue that if India aims to become a $5 trillion economy in the near future, the judiciary must be modernized. Judges need to adopt contemporary practices, cases must be resolved swiftly, and public trust in the legal system must be restored. Without these reforms, India risks falling behind global competitors in commerce and investment.

Sanjeev Sanyal’s candid remarks serve as a wake-up call. He urges India to break free from outdated systems, reform the judiciary and bureaucracy. If India’s leadership acts decisively, the country can accelerate its growth and improve the quality of life for all its citizens.

Watch the full podcast:

India’s 25-Year Window to Reclaim Global Civilizational Leadership | Sanjeev Sanyal | Rahul Dewan

Sanjeev Sanyal analyses India’s critical 25-year demographic window to reclaim civilizational leadership through economic growth and cultural renaissance. Learn how ancient Indian maritime corporations with 500+ shareholders financed global trade networks backed by temple-banking systems. Sanjeev Sanyal also exposes India’s vulnerabilities in shipping, and need of bureaucratic modernization, judicial transformation, tourism industry reform and strategic shipbuilding revival.

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