Sound Public Policy: Key to Indias Economic Growth and Social Development

A sound public policy that is transparent, accountable, and effective is needed to achieve faster and durable economic growth and social development, said PK Mishra, Principal Secretary to the Prime Minister, on Thursday. Addressing students and faculty at the 19th convocation of the Indira Gandhi Institute of Development Research (IGIDR), he urged the institute and students to contribute to research in a big way so that it can help the country achieve the goal of a developed nation by the turn of 2047 when the nation will be celebrating the first century of freedom.

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IGIDR's Role in Economic Research

IGIDR, the premier economic and policy research institute, is run by the Reserve Bank of India. While Mishra was the chief guest, Reserve Bank Governor Shaktikanta Das, who is also the president of the institute, presided over the ceremony, which awarded three PhD degrees, four MPils, and masters degrees (MSc) to 23 students.

Research and Action

Mishra emphasized the importance of research and action, quoting German-American social psychologist Kurt Lewin, who said, "No research without action, no action without research." He highlighted the role of economic research, particularly quantitative and empirical research, in providing insights into complex and dynamic realities of societies. This enables policymakers to assess the needs and preferences of citizens, evaluate the impact and effectiveness of interventions, and design responsive, inclusive, and sustainable policies.

Economic Research in India

Mishra noted that economic policy research in India has its roots in the five-year plan years, especially the first five such plans. He pointed out that economic research can help policymakers identify and understand the problems and opportunities they face, echoing the words of Nobel laureate in medicine Albert Szent-Gyorgyi: "Research is seeing what everybody else has seen and thinking what nobody else has thought."

Data Analysis and Policy Decisions

Mishra emphasized the importance of applying rigorous methods and analysis to data, as economic researchers can uncover new patterns, trends, relationships, and causalities that can inform policy decisions. He highlighted that economic research can reveal the drivers and consequences of poverty, inequality, migration, and other phenomena that affect the well-being of people and societies.

In conclusion, PK Mishra stressed the significance of sound economic research in formulating and implementing policies based on facts and logic rather than perception and intuition. By leveraging research and evidence, policymakers can make informed decisions that contribute to faster and sustainable economic growth and social development, ultimately leading India towards its goal of becoming a developed nation by 2047.