![]() ![]() This meant that India could not create large scale jobs in labour-intensive manufacturing, which would have pulled our per-capita incomes up even further. The effect was that despite a more open trade environment, Indian manufacturing failed to gain a foothold in domestic and international markets, evidenced by the share of manufacturing in GDP and employment remaining stagnant over the past three decades. Indirect taxes were cascading and varied across states. Direct taxes remained uncompetitive in global markets. Agriculture marketing did not figure on the reform agenda. This reluctance meant that our labour laws remained archaic and encouraged informal employment rather than formal. More importantly, these structural reforms boost growth across the economy, making the size of the economic pie bigger.Ī reluctance to undertake these ‘hard’ reforms resulted in this two-paced nature of growth witnessed in India. However, it is these hard reforms that structurally alter an economy, and hence are often called structural reforms, given the long-lasting impact they have on the economy. The other type are ‘hard’ reforms, which require a dismantling of old systems, and are often fiercely contested. Reforms can take two forms: they can be ‘soft’ reforms, which are easier to pass as they encounter mild opposition, at best. Fifteen thousand schools will be strengthened to include all components of the National Education Policy. The implementation of the Higher Education Commission and the National Research Foundation will ensure the strengthening of India’s tertiary education and research ecosystem. Investments have also been increased in waste management, reduction of air pollution, and provision of drinking water supply. It is also important to recognise that the Budget announcements are a continuation of a series of structural reforms that have been undertaken over the past few years.Īt the same time, due focus has also been paid to human capital, through the launch of the Pradhan Mantri Atmanirbhar Swasth Bharat Yojana, with an outlay of Rs 64,180 crore over six years to develop capacities in primary, secondary, and tertiary health systems. The move to allow 74% FDI in insurance will further strengthen FDI inflows. The creation of the Asset Monetisation Pipeline and dashboard, a major impetus has now been given to raising non-tax revenues. By announcing the Asset Monetisation Programme (AMP), innovative funding tools have been utilised to raise revenues, without having to tinker with the direct tax rates. By announcing the privatisation of two banks and one insurance company, the government has sent a strong signal that it is willing to make tough decisions in the nation’s larger interest. This commitment has been demonstrated by a 34.5% increase in capital expenditure, with provision for a further Rs 2 lakh crore of capital expenditure for states and autonomous bodies to utilise. The expansion in capital expenditure reiterates the government’s commitment to promoting investment-led growth. ![]() The FY22 Budget has reinforced growth as the driver of India’s transformation. Growth can only be unleashed through biting the tough bullet of reforms. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |