The distinguished panelists at N.K. Singh’s book launch last week were asked by the moderator to spell out one ‘big’ idea that the government should pursue to secure sustained high growth and distributional equity. The responses ranged from improved governance, education, water to strengthened markets and ‘no politics’.

Had I been asked such a sweeping question, my response would have been deliberately ‘small’. This is because ‘big’ ideas beg the very question that is the despair of all public-spirited Indians. Why is it that despite widespread understanding of what is wrong with our political economy and the solutions required, the postscripts on reform inevitably contain the same message?

I believe we must now look beyond the systemic blockers that have been so often discussed to finding the incremental opportunities for value generation. We must, in short, avoid the avoidable cost. This would have been my ‘idea’ and I would have drawn on the current discussions on the price of natural gas and whether or not the recently discovered gas reserves offshore East India should be sold at a market price or a discounted regulated price. I would have argued that if indeed the government decided to regulate, it would be akin to an avoidable shot in the public foot.

But first a disclaimer. I work for a company that imports Liquefied Natural Gas (LNG). But I hope the reader will agree that my arguments against price regulation are based on objective logic, not driven by a corporate agenda.

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