Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
1) Discuss the importance of an effective, efficient and expeditious contract enforcement regime to economic growth and development.(250 words)
Why this question:
With India currently ranking at 77 in the World Bank’s Ease of Doing Business Index, jumping from 65 place in the 2014-18 periods, Department for Promotion of Industry and Internal Trade (DPIIT) is working towards pushing India to the top 50 countries in the Ease of Doing Business Index. Enforcement of contracts being one of the key dimensions that require focused attention.
Key demands of the question:
The answer must analyse India’s Position on Enforcing contracts with respect to the importance it carries in the economic growth and development of the country.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
In a few introductory lines explain the background of the context of question.
Discuss the following aspects in the answer:
- Explain that the importance of an effective, efficient and expeditious contract enforcement regime to economic growth and development cannot be overstated. A clear and certain legislative and executive regime backed by an efficient judiciary that fairly and punctually protects property rights, preserves sanctity of contracts, and enforces the rights and liabilities of parties is a prerequisite for business and commerce.
- Explain that India’s Position on Enforcing contracts indicator over the years has shown improvement from 186 in 2014 to 163 in the 2018 report. However, in comparison with its BRICS counterparts and sizeable GDP based market economy, a greater room for improvement is discreetly felt.
- Discuss the Importance of just and efficient contract enforcement by highlighting the pros and cons facing the current system of business.
- Explain Why is India still lagging behind on Enforcing contracts?
- What needs to be done?
Conclude with way forward.