The contribution of industry and services would be paramount for bringing India’s quest of leapfrogging into the US$10 trillion economy by 2030 into fruition. And it would essentially be four kinds of businesses which would be the main pillars for realising our growth potential. These are manufacturing , new economy sectors and start-ups, businesses in the infrastructure space and the small and medium scale sector. These need to be developed and nurtured to emerge as winners. This was stated by Mr Subhash Chandra Garg, Secretary, Department of Economic Affairs, Ministry of Finance during the Session on How to Make it Easy to do Business Sector’ at the Confederation of Indian Industry’s (CII) Annual Session 2018: Building a Better India Together: Responsible, Inclusive & Ahead in New Delhi today.
Elaborating on the subject, Mr Garg said that conducive environment for doing business would rest on four factors . First, improving the ease of doing business by streamlining procedures, reducing cost of operation, ensuring simplicity and transparency. Second, creating and nurturing a stable macroeconomic environment for businesses to thrive. This would entail a stable rupee, benign inflation; provision of adequate resources for the private sector, promoting FDI, among others. Three, provision of capital and finance to industry to access credit at cost effective rates to facilitate investment ; four, facilitate skill development and simplifying labour laws.
While focussing on the issue of macro-economic stability , Mr Garg eluded that the government has effected structural changes to transform the economy. Many landmark initiatives which have been effected include areas such as implementation of GST, Bankruptcy code and other similar actions such as systems to ensure better tax compliances, digitisation, aadhar, containing fiscal deficit, among others .
On easier access to capital and finance, the government has announced a borrowing programme in a way that it does not suck savings from the system, raised portfolio investment limits to bring in foreign portfolio investment and liberalised the FDI regime. Besides, it is taking initiatives to bring new hybrid instruments. Further, the government is planning to bring out Overseas Investment Policy Bill to help Industry invest abroad. The government is committed to push the reform process forward and would effect regular consultation with industry to take the economy to the US$10 trillion mark by 2030.
8 April 2018
New Delhi