Structural reforms paving the way for long-term, sustainable growth by Mr Honey Katiyal, Founder & CEO, Investors Clinic

New Delhi, March 17, 2018: Any nation’s economy depends on the kind of reforms it introduces and executes in order to bring a positive change in the overall economic and business environment. From changes in taxation to editions in laws, the nation’s stand on reforms paves the way for growth. Such has been the case with India, especially in the last 12-18 months where the emphasis has been on growth and bringing reforms that have not just been historic but have managed to set the stage for more such improvements in the coming years.

Structural reforms like Goods and Services Tax (GST), PradhanMantriAwasYojana (PMAY), Real Estate Regulatory Act (RERA), Insolvency and Bankruptcy Code (IBC), PradhanMantri Jan DhanYojana (PMJDY) have been some of the radical moves that have tried to address the structural shortcomings and have been successful in terms of implementation to a great extent. These reforms at the core level have not only led to better opportunities for the citizens of the country but have led to greater transparency, accountability and answerability on part of the Government. The reforms have been introduced in different fields with different purposes but their aim has been to cement the very foundation of sustainability and economic prosperity for the masses. The emphasis has led to greater autonomy and has struck at deep-rooted problems of red-tape in the real estate sector, need for housing for all, taxation issues and asset quality. These reforms are not only seen as short-term but a long-term overhauling method to bring more accountability in the business environment.

These reforms have got a green signal from investors within and outside the country as well. Despite a low GDP growth in the immediate aftermath of the introduction of some of these reforms, foreign as well as domestic investors have supported the idea of reforms and have voiced their opinions on the need for more such reforms at regular intervals of time.

However, these set of reforms are still not enough to plunge the loopholes in policies and the system. More such reforms need to see the light of the day to be able to bring in holistic and inclusive growth. The immediate pain points have been somewhat nailed with the introduction of GST, RERA, PMAY etc but the areas like agriculture, labour, manufacturing require more such structural reforms. Reforms specifically aimed at job creation with stable earnings can help accrue the benefit of such reforms to each and every part of the population. While vocational and skills training has been considered an essential policy parameter, it has been met with limited success when it comes to the industry numbers.

The PradhanMantriFasalBimaYojana (PMFBY), PradhanMantriKrishiSinchayeeYojana, electronic agriculture market (e-NAM) among others have been some of the policy initiatives by the present Government to double farmer’s income by 2022. However, these schemes are yet to show significant results.

NITI Aayog, the country’s premier institution of planning aims to bring in a set of reforms in the agriculture sector which has seen limited to almost no growth in the last few years. Key initiatives like online spot and futures trading, contract farming, investing in cold chains among others focus on expanding the growth of the agriculture sector. With a focus on Make in India, labour reforms are the key to bring in more changes in the manufacturing sector. The lack of a wholesome labour policy at present needs to be replaced by a policy that not only focuses on growth but also pays equal attention to the rights of workers.

Experts suggest that the next wave of reforms are expected within 12-24 months where the Government needs to focus on areas that have received little to no attention in order to generate more employment and more growth as a result.

Corporate Comm India(CCI Newswire)