May 15, 2019
Decisive Government at centre must to push economic reforms to the next level: PHD Chamber
While expressing his confidence on the performance of Indian economy, Mr Rajeev Talwar, President, PHD Chamber of Commerce and Industry said in a press statement issued here today that a decisive government at this juncture would be crucial to push India’s growth trajectory to the next level.
India is the fastest growing emerging economy in the World and has been projected to attain a size of USD 5 trillion in the next 5 years, said Mr Talwar.
The reforms push has contributed significantly during the last few years in terms of ease of doing business environment, containing inflation and macro-economic stability, said Mr Rajeev Talwar.
However, the most crucial reforms such as labour reforms are a need of the hour; repealing archaic and stringent labour laws would go a long way to facilitate ease of doing business in the country although “Fixed Term Employment” is a great step forward. Land reforms such as increase in the lease period and creation of land banks for the use of industry should be seriously focussed, going forward, said Mr Rajeev Talwar.
Significant improvement in the ease of doing business in the recent years is highly appreciable. However, the effect should become visible at the ground level with ease of doing business rankings improving to the level of 25, said Mr Rajeev Talwar.
MSMEs hold immense potential to create employment with a special focus on ease of doing business for the MSMEs such as easier compliances and availability of finances at lower cost. The sector has potential to create millions of new jobs for the growing population, said Mr Rajeev Talwar.
After the successful implementation of GST, the focus should be on rationalization of direct taxes to make it more progressive and representative of the larger population. Time has come to reduce Corporate Tax to a level of 25% for all corporate tax payers without any turnover criteria to enhance collections and promote greater compliance, said Mr Rajeev Talwar.
The thrust of the government on the housing and real estate over the last many years is highly appreciable. Further reforms in housing and construction sectors would definitely create employment opportunities for millions of unskilled, semi-skilled and skilled workforce as the sector is the second largest employer after agriculture, said Mr Rajeev Talwar.
The focus should be on exploring the new areas to revitalize exports growth with the improvement in logistics infrastructure and trade facilitation measures. This would enhance the exports growth trajectory and create millions of jobs in the next 5 years, said Mr Rajeev Talwar.
The increase in public investments in agricultural infrastructure would attract greater private investments in cold storage, warehousing and supply chain of agriculture produce thereby reducing food wastages and raising returns to the agriculturists, said Mr. Talwar.
To facilitate further growth of the infrastructure sector, integrated public transport projects such as roadways, railways and waterways must be strengthened. Privatisation of railway and road transport on the lines on aviation industry is the need of the hour, said Mr Rajeev Talwar.
Focus on twin merit goods of education with skill development and basic health and safety should continue with a longer term vision, said Mr Talwar.
Education expenditure as a percentage of GDP needs to be enhanced to the level of 6% of GDP. There should be a school in the radius of 1 km and a college in the radius of 10 km in the next 5 years and facilitation for increased investments in Teacher Training Facilities, said Mr Rajeev Talwar.
Health expenditure as percentage of GDP needs to be enhanced to 3% of GDP. For the inclusive health facilities, there should be a health centre in the radius of 1 km and a good state of the art hospital in the radius of 5 km, said Mr Rajeev Talwar.
Going ahead, the next 5 years would be most crucial for the Indian economy as the enhanced growth trajectory has to be matched with the job creation for millions of growing young workforce, said Mr Rajeev Talwar.
Koteshwar Prasad Dobhal