HomeNewsOpinionPolicy | Rapid growth puts greater demand for an efficient judicial system

Policy | Rapid growth puts greater demand for an efficient judicial system

It is understood that rising income has a positive impact on rising crime. Therefore, neglect of the judiciary and the justice system as a whole can lead to erosion in governance and rule of law itself.

May 11, 2020 / 14:29 IST
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“Given the potential economic and social multipliers of a well-functioning legal system, this may well be the best investment India can make”

Economic Survey 2018-19

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The government’s latest budget promise of making India a $5 trillion economy has been lauded for being ambitious and bold, and is ‘imminently possible’ according to the finance minister Nirmala Sitharaman.

However, barriers to India’s growth are not just economic. Beyond share markets, policy regimes and industrial policies there are crucial and fundamental structural deficiencies that obstruct development. The Economic Survey captures this by stating that “arguably the single biggest constraint to ease of doing business in India is now the ability to enforce contracts and resolve disputes. This is not surprising given the 3.5 crore cases pending in the judicial system”. Though India has considerably improved and is now ranked 77 out of 190 countries in the World Bank’s Ease of Doing Business index, it still takes, on average, 1,445 days to enforce a contract.