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 senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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