Sanjeev Sanyal slams India’s slow judicial system, calling it a major obstacle to growth
From GST 2.0 to Judicial Overhaul, How One Maverick Economist Is Shaping India’s Future
Sanjeev Sanyal India’s Most Fearless Economic Reformer – India’s economic landscape is changing fast and one voice stands out in the crowd: Sanjeev Sanyal, a bold, reform-minded economist who’s not afraid to challenge outdated systems, call out inefficiencies, and push for deep structural change. Whether it’s simplifying taxes, streamlining regulations, or rethinking the legal system, Sanyal is leading a quiet revolution from within the government.
Who Is Sanjeev Sanyal and Why Is He in the News?
Sanjeev Sanyal is a Member of the Prime Minister’s Economic Advisory Council (EAC-PM) and one of India’s most influential policy thinkers. He’s also a bestselling author, Rhodes Scholar, and former Principal Economic Adviser to the Ministry of Finance.
But what makes him different is his fearless approach to reform. He doesn’t just talk about big ideas, he dives into the messy details of how systems actually work (or don’t). He’s known for saying things like:
“Never confuse capitalism with the interests of capitalists.”
That kind of clarity has made him a hit on social media, where clips of his speeches and interviews go viral. Recently, he’s been in the spotlight for:
- Criticizing India’s judicial system as the biggest hurdle to becoming a developed nation
- Defending GST 2.0, a simplified tax regime that aims to reduce confusion and boost efficiency
- Calling out insurers for not passing GST benefits to consumers
- Challenging H-1B visa dependence, saying it benefits foreign countries more than India
His bold statements sparked debates across industries, media, and policy circles.
Sanjeev Sanyal has sparked intense debate by openly criticizing India’s judicial system, calling it the “single biggest hurdle” to achieving the government’s Viksit Bharat (Developed India) vision. Speaking at the Nyaya Nirmaan 2025 conference, he argued that the slow pace of dispute resolution and weak contract enforcement forces policymakers to over-regulate, stifling innovation and economic growth. He said, “Because I do not think the legal system will sort out the 1%, I have to design rules for the 99%,” highlighting how lack of judicial efficiency leads to excessive bureaucracy.
Sanyal also questioned the effectiveness of Section 12A of the Commercial Courts Act, which mandates pre-litigation mediation. According to him, “98-99% of these mediations fail,” adding unnecessary delays and costs. His critique isn’t just about inefficiency, it’s a call for cultural and structural reform, urging India to rethink how laws are written, interpreted, and enforced.
If taken seriously, his proposals could revolutionize India’s legal landscape by shifting focus from rigid rule-making to trust-based governance and faster resolution mechanisms. This could unlock economic potential, reduce compliance burdens, and foster a more agile business environment. His words challenge the status quo and invite a bold reimagining of justice in India.
What Is GST 2.0 and Why Did Sanyal Call It a Game-Changer?
One of Sanyal’s biggest recent contributions is his role in shaping GST 2.0, a major overhaul of India’s Goods and Services Tax system. The old GST had multiple tax slabs, confusing exemptions, and endless compliance headaches. GST 2.0 simplifies all that.
Key Changes in GST 2.0:
| Feature | Old GST | GST 2.0 |
| Tax Slabs | 5+, including 0%, 5%, 12%, 18%, 28% | Only 2 slabs: 5% and 18% |
| Popcorn Example | Different rates for salty vs caramelised | Flat 5% for all types |
| Compliance | Complex registration and filing | Streamlined process with fewer disputes |
Sanyal used the “popcorn analogy” to explain how GST 2.0 ends silly debates over tax rates:
“The salty or caramelised popcorn debate has ended. GST 2.0 is more simplified.”
But he didn’t stop there. He also warned manufacturers not to hoard the benefits:
“The windfall is for consumers, not for manufacturers.”
He emphasized that public pressure and competitive markets should ensure that lower taxes lead to lower prices. He rejected the idea of bringing back “Inspector Raj”—a system where bureaucrats police businesses:
“We don’t want to create another Inspector Raj. That’s not helpful.”
Instead, he believes in market-driven accountability, where consumers demand fair pricing and businesses respond to competition.
Why Sanyal Says India’s Judicial System Is the Biggest Obstacle
At the Nyaya Nirmaan 2025 conference, Sanyal made headlines by calling India’s judicial system the “single biggest hurdle” to achieving the government’s Viksit Bharat (Developed India) vision.
He argued that slow dispute resolution and weak contract enforcement force policymakers to over-engineer regulations. Instead of trusting courts to resolve the 1% of bad cases, regulators create rules that burden the other 99%.
“Because I do not think the legal system will sort out the 1%, I have to design rules for the 99%.”
He gave a specific example: Section 12A of the Commercial Courts Act, which mandates pre-litigation mediation. According to Sanyal, 98–99% of these mediations fail, adding time and cost without reducing court load.
Key Problems He Highlighted:
- Delays in dispute resolution
- Complex legal procedures
- Low trust in contract enforcement
- Over-regulation due to weak judiciary
Sanyal believes that unless the judicial system is reformed, other economic reforms will fall short. He’s calling for cultural and structural changes in how laws are written, enforced, and interpreted.
This is a bold stance, few policymakers openly criticize the judiciary. But Sanyal argues that India has a 20–25 year window to grow before its demographic advantage fades. Fixing the legal system is urgent.
How Sanyal’s “Process Reforms” Are Quietly Changing India
While most people focus on big-ticket reforms like GST or privatization, Sanyal is obsessed with “process reforms” small, sector-specific changes that remove everyday friction.
“Most pain points of living are caused by small frictions. They won’t hit the newspapers, but they matter.”
He believes that changing three words in a law, merging defunct departments, or simplifying registration forms can have a huge impact. These reforms don’t make headlines, but they improve lives.
Examples of Process Reforms:
- Simplifying GST registration to reduce harassment
- Removing outdated rules that stall innovation
- Streamlining business licenses and compliance
- Improving digital access to government services
Sanyal’s team at the EAC-PM is working on these reforms with the Rajiv Gauba committee, which is focused on deregulation.
He also pushes back against corporate resistance. When insurers complained about losing input tax credit after GST cuts, Sanyal said:
“Stop whining. Cut premiums. Innovate.”
He believes that reform is not just about policy, it’s about mindset. Businesses must adapt, innovate, and serve consumers better.
Why Sanjeev Sanyal Matters
Sanjeev Sanyal is not your typical economist. He’s a reformer, storyteller, and systems thinker who sees the big picture but isn’t afraid to fix the small stuff. His ideas challenge entrenched interests, push for accountability, and aim to make India more efficient, fair, and future-ready.
Whether it’s simplifying taxes, reforming courts, or streamlining bureaucracy, Sanyal’s message is clear:
“India doesn’t need more slogans. It needs smarter systems.”
As India enters a critical phase of growth, voices like his will shape not just policy but the very way we think about governance.
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