Modi can use his ‘Thatcher Moment’ for bold reforms: SAD’s Naresh Gujral

BJP’s stupendous victory in the Lok Sabha elections is a “Thatcher moment” for Prime Minister Narendra Modi and he can use it for some bold economic reforms, which, though painful initially, will be beneficial in the long run, says ally Shiromani Akali Dal (SAD).

Talking to ET, SAD’s Rajya Sabha MP Naresh Gujral, also chairman of Standing Committee on Commerce, said: “Modi has no coalition pressures and he is supreme in BJP.” These two advantages give him the power to bring about reforms in farm sector, industry as well as usher in much-needed labour reforms, he added.

“Modi has got a massive majority. People trust him and he has the nation’s good at heart. He should bring about reforms that may be painful in the beginning but will pay results. Britain became more competitive after Margaret Thatcher became the prime minister and brought about reforms. She took on the striking labour unions head-on,” Gujral said.


Among the suggestions are: Providing minimum support price to farmers which is as close to the Swaminathan panel’s recommendation, privatisatising perennially loss-making public sector units such as Air India, making it easier to sack non-performing employees provided they are compensated adequately and initiating judicial reforms for speedy justice in cases of economic frauds.

“These are tough decisions which can only be taken during the honeymoon period of a government,” Gujral said. Asked about objections from the labour unions, Gujral said there would be some confrontation but to transform economy, make India a manufacturing hub and create jobs, these steps must be taken.

“In a competitive world, many companies will die or merge. There should be reforms to let companies hire and fire. Compensate those who are fired. Companies spend a lot of money on training their employees and there is no fun in firing them,” Gujral said. He maintained if Modi government was promoting ease of business, then it should realise that labour reforms formed a key part of that.

Batting for judicial reforms, Gujral said: “Banks are being looted through fraud and probe continues for years. A proper cadre to investigate white collar crime should be created instead of the CBI probing them all. Specialists like CAs and cybercrime experts should investigate such cases.”