Five things the government needs to do to revive the economy:
Favourable policies that encourage the manufacturing sector:
l Introduce the goods and services tax (GST), which is likely to add as much as 1.5% to GDP (gross domestic product) growth. A uniform GST would help make the Indian market more competitive globally.
l Implement national manufacturing policy that outlines setting up of national investment and manufacturing zones to provide a comprehensive ecosystem of world-class infrastructure, connectivity, skill development and facilities.
l A cabinet committee on investments to fast-track large projects.
l Abolish minimum alternate tax on special economic zones.
Agricultural reforms to raise food output: Focus on creating marketing and supply chain infrastructure to create linkages between retail demand and the farmer. Encourage farmers to form co-operatives on the lines of Amul that had set forth a white revolution.
Stepping up private investment to revive growth: Provide certainty of taxes to attract long-term investments. Retrospective amendments need to be in the rarest of rare cases.
Healthcare: Increase government expenditure on healthcare, ensure transparency of public health schemes, encourage public-private partnership. Give infrastructure status to healthcare, exempt it from minimum alternate tax, and waive service tax on health insurance.
Rationalize subsidies: Cut down wasteful expenditure, focus on amending the direct taxes Bill with fewer exemptions and lower tax rates.
