We can’t afford another down-cycle. We’re in the acceleration phase of growth, amidst growing socio-economic aspirations, and the beginning of a manufacturing revolution to help fulfill those dreams. But the aspirations are unmet, manifest in social discontent visible in the recent spate of bombings, the vengeance of the Naxalites and a quota system that, in its effort to be fair, is making everything unfair.

Kick-starting the acceleration cycle requires the active participation of the citizen, the corporation and the state. The citizen and corporation are working very hard, but the state has abdicated. The state provides over 50 per cent of all services from healthcare to pensions -- and they are largely delinquent.

Today, Indian corporations are more influential than the state. If India is draped in wonder, much is due to their efforts. Corporations have power, money, and respect. They have harvested the most from reforms, so they also have the largest stake in ensuring their continuity. They can lead the charge for change. They can start by not being deferential to government. Corporations have benefited from government largesse and protection over the years, and perhaps feel obliged not to be openly rebellious. But now they are adult enough to do without that largesse. Instead of expanding their business overseas, where the regulatory climate is more salubrious, they can stay at home and insist on the right reforms which will benefit everyone, not on the exceptions that will make their companies slip under the wire and get their business done.

... contd.