Improving law and order key to economic growth: Government

NEW DELHI: Within a week of Parliament nod for tougher anti-terror laws, the Government on Monday said that there is a strong case for fast-tracking reforms of the law and order machinery to enable economy counter the shocks of global turmoil.

"There is ...strong case for fast-tracking pending reforms, including institutional reforms relating to classic 'Public Good' - law and order", said the Mid-Year Review of economy tabled in Parliament.

The 'classic Public Good' include areas like defence, law and order and environment which are a responsibility of the government, according to Rajiv Kumar, director of economic think-tank Icrier.

Government observations come in the wake of India Inc along with others expressing outrage at the Mumbai terror strikes that claimed about 200 lives including that of several business leaders.

The review said 'miracle economies' of Asia were able to maintain their high growth for decades despite repeated shocks as they responded quickly with pragmatic policies.

It said India moved to higher growth path of 8 to 9 per cent as a result of reforms in the 1990s. "In the face of global slowdown and moderation in domestic investment demand, accelerating the pending policy reforms is perhaps the answer to flagging business sentiments."

Parliament on December 7 passed two bills for setting up a National Investigation Agency and amending the Unlawful Activities Prevention Act to deal with terrorism effectively.