Everybody has their own agenda for reforms. It ranges from subsidies to tax cuts and eventually to stimulus packages. In India people are confused between tax cuts and stimulus packages. What we have seen so far are tax cuts not stimulus packages.
Now, everybody is talking about Reforms 3.0. Can you blame them? It has been 5 years of stiff opposition and the only thing the previous government could achieve is energy security through nuclear deal and the rural employment scheme.
But, things have changed and the stiff opposition no longer exists. Everybody can dream and come up with their own list.
Here I have compiled the list of ‘reforms’ everyone is waiting for :
- As I have blogged earlier, Government should reduce stake by at least 20% in Navratnas which would unlock a cash of 3 lakh crores.
- Abolish Central Sales Tax and introduce Goods and Service Tax
- Open up Insurance sector for more foreign investment
- Reduce excise duties and levies for exporters.
- Extending credit to small and medium enterprise by cajoling the banks.
- Subsidized seeds to farmers through Bharat Nirman initiative.
- Pension reforms should be re-visited
- Land reforms should be brought in so that another Nandigram or Singur will not repeat
- Education reforms : Rich people can go to foreing universities and poor people cannot. — I thought this reform is to improve education in India. Silly me.
- Cheap loans for hospitality sector.
- Quote for scheduled castes in Private sector. Yeah you read that right.
- Legal framework to prevent monopoly in Aviation sector. This is a special request from Capt. Gopinath
- Telcos to submit their own list to the new government. Most of them related to policies and spectrum
This might not be a comprehensive list. But you get the idea. Now we can understand the irrational exuberance being shown in the markets. India suddenly is the favorite investment destination in the BRIC countries. Probably in south-east Asia and may be in the whole world.
We sure live in exciting times.
Any reforms for bloggers? How about this one?
14. Adsense income will be tax exempt under section 80Z
PS : Many of these are not reforms but perfectly fit the bill for laundry list.
Comments
Hey Sriram,
what you have pointed out are really good points. But in my opinion there is one more reform which is required over everything else— What about Power?
India today needs power more desperately than any other country. Till the time we are fighting with basics in our life, its difficult to grow India as an economy.
States like UP, Bihar, Tamilnadu need power to sustain Industries. This is a sector which should be given serious consideration from Govt.
Hei Rabi, I agree. In fact I cannot agree with you more. Power is a constant problem even in cities like Bangalore.
For the same reason I have posted about smart grid and why India needs its more than America or any other nation.
http://trak.in/tags/business/2009/04/25/india-needs-a-smart-grid-too/
yeah Sri, have read that article. Enjoyed it thoroughly. Lets see what is Govt’s agenda this time :)!
Comments