India has lost one of its most outspoken and visionary economists, Bibek Debroy, Chairman of the Prime Minister’s Economic Advisory Council (PMEAC), and a leading advocate for bold reforms in India’s economic landscape. 

Known for his analytical mind, astute insights into economic policies and his fearless stance on transformative changes, Debroy’s work has left an indelible mark on the country’s economic policymaking and intellectual discourse. 

Born in Shillong in January 1955, Bibek Debroy’s career spanned over four decades, during which he became widely respected not only for his scholarship, but also for his unflinching dedication to ideas that he believed could propel India towards greater prosperity. A polymath by nature, Debroy’s contributions extended across diverse fields, from economic theory and policy reform, to ancient Indian philosophy and translations of Sanskrit texts, including the Mahabharata, the Ramayana and the BhagavataPurana in three volumes. He had also translated the Bhagavad Gita and the Harivamsha.

Known for his staunch independence, Debroy always expressed his own views on economic issues, even if it meant being seen as less of a team player. This may have been a reason why he changed over a dozen jobs in his career. During his career, he served in several influential roles such as Chancellor of Pune’s Gokhale Institute of Politics and Economics, Director of the Rajiv Gandhi Institute for Contemporary Studies, and Director of Project LARGE (Legal Adjustments and Reforms for Globalising the Economy) that focused on legal reforms. Most recently, he was Chairman of the Finance Ministry’s ‘Expert Committee for Infrastructure Classification and Financing Framework for Amrit Kaal’. 

Whether it was rooting for a new Constitution for India, suggesting imposing income tax on agricultural income, or recommending a single rate of GST for the country, Debroy always thought of bold economic reforms that sometimes landed him in controversies. 

Debroy’s most important contribution was his 2015 committee report on Railway reforms, which stirred a lot of debate as it advocated, among other things, setting up of an independent regulator to oversee the railway sector and call to rationalise freight charges.

Champion of Bold Policy Reforms

Debroy was never one to shy away from challenging the status quo. In a country where certain topics often remain untouched in the realm of public policy, he called for courageous reforms that resonated beyond the immediate economic implications. His suggestions, at times controversial, stirred debate and highlighted the need to rethink traditional approaches to India’s economic growth and governance.

One of Debroy’s most daring propositions was the call for a new Indian Constitution. He argued that while the Constitution of India had served the nation well, it needed to be overhauled to reflect modern-day aspirations and socio-economic challenges. Debroy saw the potential for a framework that would more dynamically support economic growth, individual rights, and institutional efficiency, suggesting that the time had come for India to consider a structure more aligned with the 21st century.

Equally impactful was his position on taxing agricultural income. While agriculture plays a crucial role in India’s economy, Debroy argued that taxing agricultural income above a certain threshold could help widen India’s tax base and address income disparities more effectively. This proposition sparked a necessary conversation about rethinking the taxation structure within India’s largest employment sector, even though it remains a politically sensitive topic. Debroy’s suggestion was rooted in his belief that no sector should be beyond the reach of well-designed fiscal policy if India is to achieve equitable growth.

Another reform that Debroy championed was the push for a single-rate Goods and Services Tax (GST) system. While India’s GST was introduced in 2017 with multiple tax slabs, he argued that a streamlined, single-rate system would improve efficiency and reduce compliance burdens. By calling for a simpler GST structure, Debroy envisioned a tax regime that could fuel faster economic growth, reduce complexities for businesses, and lead to more predictable revenues for the government. His views here were not just recommendations, but practical insights into how India’s economic architecture could be designed for simplicity, growth, and fairness.

Research on economic freedom

Debroy’s contributions to policy analysis were profound. One of his most influential pieces of work was his 2004 report on economic freedom, which ranked Gujarat as the top state in India in terms of economic freedom. This study examined the role of state policies in fostering or constraining economic freedom and remains a reference for understanding how governance at the state level impacts economic growth. Gujarat’s top ranking drew significant attention, especially as the state was then emerging as an economic powerhouse. Debroy’s insights highlighted the importance of economic policies at the state level, underscoring the fact that decentralised and business-friendly policies could indeed accelerate economic growth and development.

This report was one of the earliest to link policy openness and ease of doing business, with tangible economic outcomes, demonstrating Debroy’s commitment to empirical research and his knack for presenting ideas that could influence regional as well as national policy directions. His work inspired states across India to revisit their economic frameworks, placing the importance of regulatory reform and business climate at the forefront of economic planning.

A legacy of fearless ideas

Bibek Debroy’s passing leaves a void in India’s economic policy circles, where his bold and often unconventional ideas spurred reflection, debate, and sometimes opposition. He will be remembered not just as an economist, but as a thinker who looked beyond political correctness and believed in speaking uncomfortable truths if they held potential for the nation’s progress.

Debroy’s call for structural reforms, from constitutional change to tax policies, will continue to influence policymakers and scholars for years to come. His push for a single-rate GST remains an aspiration for tax reform advocates, and his thoughts on taxing agricultural income above a threshold still resonates as a call for a fairer taxation system.

As India grapples with the challenges of a rapidly evolving global economy, the legacy of Bibek Debroy endures for those unafraid to think and act differently. His life’s work reminds us that true progress often requires confronting deep-rooted beliefs and seeking transformative changes. 

Debroy leaves behind a blueprint of bold reforms and a spirit of intellectual honesty that future generations of economists and policymakers can look up to.

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