Indian finance minister pledges ‘second-generation’ reforms

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India’s Finance Minister Arun Jaitley has promised a series of much-needed reforms to revive the country’s economy.

India’s Finance Minister Arun Jaitley promised on Sunday (Nov 23) to unveil a whole series of “second-generation” reforms to try to kickstart the stuttering economy.

In an interview with the Press Trust of India (PTI) news agency, Jaitley said the reforms that would be unveiled in the budget early next year would help the country cross the six percent growth mark in 2015-16.

“The country needs a larger opening out in more sectors… I think we have a lot of exciting times ahead of us and I do see investments coming into India,” he told the agency.

Asked about the broad contours of the budget, Jaitley said there was “a whole set of second-generation reforms”. The first generation in 1991 opened up India’s economy to foreign investment while introducing major trade liberalisation and tax reforms.

The economy grew by 5.7 per cent in the first financial quarter, its best pace since early 2012, spurred by growing business confidence following the landslide election victory of Prime Minister Narendra Modi’s Bharatiya Janata Party. Although the right-wing government has introduced some reforms, it has so far steered clear of “big bang” initiatives that economists say are needed to boost investment and manufacturing.

Jaitley also hinted that the government might reconsider its subsidy policy. “Subsidy must be a quantified amount given to an identifiable section… you cannot have such sections enjoying the benefit who are not entitled to,” he said.

India’s subsidy bill increased fivefold under the previous left-leaning Congress government, which implemented policies to buy agricultural produce at guaranteed prices and distribute cheap grain to the poor.

Modi’s government has held back from dismantling many populist schemes. But it did recently lift diesel price controls in a move to reduce India’s energy bill.

The new government’s resolve to further open up the economy will be tested during the winter session of the parliament which begins on Monday, with contentious tax and land bills on the agenda.

 

 

Source : Channel News Asia | November 23, 2014

Thomas D’Innocenzi

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Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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