Of the 30 reforms listed by the Centre for Strategic and International Studies (CSIS), the Indian government has completed three — passage of the Jan Vishwas Bill 2.0, opening up the nuclear sector for private participation, and rationalising Goods and Services Tax (GST) slabs.
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The remaining recommendations include low hanging fruits, such as publishing an annual report on the origin and destination of inbound foreign direct investment (FDI) and raising the ceiling for foreign institutional investors (FIIs) in Indian companies.
“The Indian government appears to have some runway to pursue major reforms, and recent steps such as atomic energy reforms and insurance reforms show that significant change is possible,” Richard Rossow, Chair, India and Emerging Asia Economics, said here.
The CSIS chair on India and Emerging Asia Economics also tracks the initiatives taken by various state governments.
Also Read: India aims at 10 pc share in global merchandise exports by 2047: WTO reportAmong the difficult reforms on the CSIS wishlist are streamlining of the land acquisition process, reduction of government equity in public sector banks to 33 per cent, bringing petroleum products, alcohol, real estate and electricity within the ambit of the GST, and introduction of an umbrella online dispute resolution platform.
The CSIS also suggested establishing a single portal for integrating submissions from customs, the Directorate General of Foreign Trade (DGFT), ports, banks, and shipping companies, stop forcing banks to lend to priority sectors, and address the multiplicity of GST audits for taxpayers registered in different states.
“With the next national election not due until early next year, the government may have room to try other large initiatives,” Rossow said.
He said India is one of the fastest-growing economies in the world, and domestic economic reforms aimed at improving the business environment are key to further accelerating economic growth and making the country competitive vis-a-vis other global players.
The CSIS said the list of reforms has been collated after rigorous literature reviews, surveys, and brainstorming sessions involving scholars, economists, and industry leaders.