There have been a number of high-profile policy rollbacks, underscoring the need for consultation and consensus-building before implementing major reforms

Since the Modi Government 1.0, India has witnessed a series of high-profile policy rollbacks that highlight a critical issue in governance: the need for broader consultation and consensus-building before introducing significant reforms. The latest example is the rollback of the lateral entry scheme, which sought to bring professionals from outside the traditional civil services into government roles.

While the merits and demerits of such a policy can be debated, the rapid reversal following its announcement points to a deeper, more systemic issue—the lack of comprehensive stakeholder engagement.This pattern is not new. The government’s attempts to implement sweeping reforms have repeatedly stumbled due to insufficient consultation. The Land Acquisition Bill, the Citizenship Amendment Act (CAA) paired with the National Register of Citizens (NRC), and the Farm Laws all serve as prime examples. In each case, the policies were introduced with minimal input from those most affected—be it farmers, minority communities, or state governments. The predictable outcome has been an intense public backlash, forcing the government to either backpedal or face prolonged unrest.The trend is concerning. Policymaking in a diverse democracy like India requires not only a vision but also the patience to engage with a wide range of stakeholders.

This includes not just the obvious beneficiaries or those directly affected but also civil society, industry experts, and regional representatives. The lack of such engagement has led to a growing distrust between the government and the public, where every new announcement is met with suspicion rather than optimism. Moreover, the need for broader consultation becomes even more pressing when considering the long-term impact of these policies. Short-term political gains or expedient decision-making may lead to swift policy announcements, but the absence of robust dialogue with stakeholders can result in policies that are unsustainable or unimplementable in the long run.

Take, for instance, the recent discussion in the media on potential additional restrictions on Foreign Direct Investment (FDI) in the tobacco sector. While the government may have had reasons for this move, the absence of dialogue with stakeholders—particularly tobacco farmers—has exacerbated concerns.

Tobacco provides livelihood to 36 million people including 6 million farmers and 20 million farm labour engaged in tobacco farming. Since the huge scale of investment of $4 trillion that the finance minister pointed to at the recent Voice of Global South Summit, it is clear that the FDI is the only way to protect farmers. Similarly, both the ill-conceived Tax Collection at Source (TCS) on foreign travel and now the introduction of the new Tax Clearance Certificate requirement for Indians travelling abroad are poorly thought through and have virtually no machinery to provide certificates on an emergency basis.

The repeated lack of consensus-building not only undermines the effectiveness of policies but also erodes public trust in governance. It creates an environment where even well-intentioned reforms are viewed with scepticism, and the potential benefits are overshadowed by the immediate backlash. This is particularly damaging in a country as diverse as India, where the success of any policy hinges on its acceptance across different regions, communities, and economic strata. Furthermore, these repeated rollbacks damage India's international reputation, as global investors and partners begin to view the country as an uncertain policy environment. This uncertainty not only affects domestic stakeholders but also risks deterring foreign investment, which is crucial for driving economic growth and development in a rapidly globalizing world.

Moving forward, the government must adopt a more inclusive approach to policymaking. This means going beyond the corridors of power in New Delhi and engaging with stakeholders at the grassroots level. It means recognizing that the voices of citizens, small business owners, and regional leaders, are not just peripheral—they are central to the success of any reform. It also means being open to feedback and willing to make adjustments before policies are finalized, rather than being forced into a retreat after the fact.India's growth story is too important to be derailed by avoidable missteps in policy formulation.

By fostering a culture of consultation and consensus, the government can ensure that its reforms not only achieve their intended goals but also enjoy the support and trust of the people. The lesson from recent rollbacks is clear: no matter how well-conceived a policy may be, it cannot succeed without the buy-in of those it is meant to serve.

(The writer is a former consultant to MyGov. Views expresed are personal)