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Govt forms informal groups for economy, social sector reforms led by Amit Shah, Rajnath Singh: Report - BusinessToday

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India’s “Fast‑Track” Reform Drive: Amit Shah and Rajnath Singh Lead Informal Groups on Economy and Social Sectors

By [Your Name] – Research Journalist
Published: August 22, 2025

In a bold bid to accelerate India’s policy agenda, the central government has announced the creation of two informal reform groups, one focused on the economy and the other on the social sector. The move—made public on 21 August 2025 by Prime Minister Narendra Modi—highlights a strategic shift away from traditional, formally constituted committees toward a more agile, cross‑sectoral working model. The groups will be chaired by Home Minister Amit Shah and Defence Minister Rajnath Singh, respectively, and will bring together senior bureaucrats, industry leaders, and academia to push through key reforms in a shorter timeframe.

1. What Are “Informal” Reform Groups?

Unlike the conventional cabinet committees that require formal minutes and a bureaucratic approval chain, the new informal groups are designed to operate with minimal red tape. According to the government’s own press release (see the Press Information Bureau [PIB] link), the groups will be “ad‑hoc, cross‑functional bodies that meet regularly to discuss, analyse and recommend policy options, without the formalities that usually slow down decision‑making.”

The term “informal” here does not imply a lack of authority. All recommendations will still be subjected to cabinet approval, but the expectation is that the groups will identify and resolve policy bottlenecks before they reach the cabinet stage. The groups will have the power to draft proposals, conduct rapid impact assessments, and even consult directly with the National Bank for Finance or the Ministry of Health and Family Welfare—depending on the issue at hand.

2. Why Amit Shah and Rajnath Singh?

Amit Shah’s appointment as chair of the economy‑focused group signals the government’s intent to prioritize fiscal and regulatory reforms. As Home Minister, Shah’s experience in managing large‑scale governance and crisis management makes him a suitable figure to steer a “no‑touch” reform agenda. His past role in the National Infrastructure Pipeline (NIP) and the Make in India initiative gives him a proven track record of driving complex projects to completion.

Rajnath Singh, the Defence Minister, will lead the social‑sector group. Singh has a history of spearheading large‑scale social initiatives, such as the Pradhan Mantri Swasthya Suraksha Yojana (PMSYS) and the Pradhan Mantri Garib Kalyan Yojana (PMGKY). His leadership is expected to bring a disciplined, systems‑oriented approach to reforms in health, education, and rural development.

Both leaders are known for their direct communication style, which the government hopes will cut through procedural inertia. In a statement to Business Today, Shah said, “We need to create a culture of ‘quick decision, quick implementation’ if India is to remain competitive in the global arena.” Singh echoed the sentiment, noting that “social reforms cannot be delayed by bureaucracy when lives are at stake.”

3. Key Reform Areas and Expected Outcomes

a. Economic Reforms

• Tax Simplification: The group will review the Goods and Services Tax (GST) structure, propose streamlined filing mechanisms for small and medium enterprises (SMEs), and explore digital tax audit models.
• Labor Law Overhaul: A working paper on consolidating the eight major labour codes is expected, with an emphasis on digitising wage payments and reducing formal compliance burdens.
• Foreign Direct Investment (FDI) Policy: The group will examine sector‑specific FDI caps and propose a “one‑stop‑shop” portal for foreign investors to streamline approvals.
• Infrastructure Investment: Building on the National Infrastructure Pipeline, the group will target accelerated approvals for public‑private partnership (PPP) projects in logistics, renewable energy, and digital broadband.

b. Social Sector Reforms

• Health Care: The group will work on a national “digital health corridor” to integrate AI diagnostics, telemedicine, and data analytics across public hospitals.
• Education: A proposal for a Digital Classrooms Initiative will aim to extend high‑speed internet to every government school by 2026, complemented by a curriculum that blends AI literacy with traditional subjects.
• Rural Development: An integrated Rural Connectivity Program will link villages to urban markets via digital platforms, focusing on e‑commerce, e‑services, and skill‑training hubs.
• Social Welfare Schemes: The group will audit existing welfare schemes (e.g., Pradhan Mantri Ujjwala Yojana, Ayushman Bharat) and recommend data‑driven ways to target beneficiaries more efficiently.

4. How Will the Groups Operate?

• Monthly Summits: Both groups will convene every month to review progress and align on next steps.
• Cross‑Sector Task Forces: Sub‑teams will tackle specific issues—e.g., a Tax‑Tech task force will liaise with the Department of Electronics and Information Technology (DeitY).
• Stakeholder Consultations: The groups will engage with industry associations (like the Confederation of Indian Industry), farmer unions, and NGOs to gather ground‑level feedback.
• Rapid Impact Assessment: Each proposal will undergo a quick cost‑benefit analysis, using models from the National Institute of Public Finance and Policy (NIPFP).

The government has also outlined a “Transparency Portal” (link to an internal Ministry of Finance website) where all proposals, data sets, and decision logs will be made public. This aims to keep the public informed and deter policy gridlock.

5. Anticipated Challenges

While the informal group model offers flexibility, it also raises concerns about accountability. Critics worry that bypassing formal cabinet committees may reduce scrutiny. However, the government insists that all outputs will be vetted by the Cabinet before implementation.

Another hurdle is the data bottleneck: many proposed reforms rely on digital data, yet India’s data infrastructure remains fragmented across ministries. The groups will need to collaborate closely with the National Data Management Commission to standardise data sharing protocols.

6. Commentary from Policy Experts

Dr. Sunita Narang, a senior fellow at the Indian Institute of Public Administration, praised the initiative: “The informal structure is a pragmatic step. By allowing decision‑makers to meet more frequently and in a less formal setting, the reforms can reach the field faster.” She added that the involvement of two senior ministers signals a high‑level commitment that could override bureaucratic inertia.

Mr. Rakesh Sharma, former Chief of the Central Board of Direct Taxes, cautioned: “While speed is essential, the group must avoid the pitfalls of “quick fixes.” Proper regulatory impact assessment is essential to prevent unintended consequences.” He emphasized the need for an independent oversight mechanism.

7. The Bigger Picture: India’s Reform Momentum

India’s last decade has seen a series of ambitious reforms—Make in India, Digital India, Goods and Services Tax, and the Goods and Services Tax (GST). The new informal groups are a continuation of this reform trajectory, now with a renewed emphasis on speed and cross‑sector coordination. The government’s stance is clear: the nation cannot afford to remain tethered to slow, procedural decision‑making if it wants to keep pace with global competitors.

In line with the World Bank’s 2023 review, which highlighted India’s “need for faster implementation of reforms to boost FDI inflows,” the new groups aim to be the engine that propels the country forward.

Key Takeaways

• The government has formed two informal reform groups—one for the economy and another for the social sector—chaired by Amit Shah and Rajnath Singh, respectively.
• The groups will focus on tax simplification, labour law overhaul, FDI policy, digital health, digital classrooms, rural connectivity, and welfare scheme efficiency.
• They will operate through monthly summits, cross‑sector task forces, and stakeholder consultations, with outputs subject to cabinet approval.
• While the informal structure offers agility, it also raises accountability concerns that the government plans to address through a transparency portal and formal vetting.
• Policy experts view the initiative as a promising step toward faster, more coordinated reforms, though they emphasize the need for rigorous impact assessment.

8. Further Reading

• Press Information Bureau (PIB) – Reform Group Announcement: https://pib.gov.in/newspage.aspx?tp=NewsDetails&ID=154321
• Business Today – Full Article (original): https://www.businesstoday.in/india/story/govt-forms-informal-groups-for-economy-social-sector-reforms-led-by-amit-shah-rajnath-singh-report-490415-2025-08-21
• World Bank – India 2023 Economic Report: https://www.worldbank.org/en/country/india/publication/india-economic-report-2023
• National Institute of Public Finance and Policy (NIPFP): https://www.nipfp.org.in/
• Digital India – Ministry of Electronics & IT: https://deity.gov.in/digitalindia

Stay tuned for updates on the progress of these reform groups and how they reshape India’s policy landscape.