Of vision, growth pangs and solutions

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India has a historical opportunity to claim its rightful place in the world Economy. We have the natural resources, the human asset base, the financial capital, the managerial acumen and all other attributes to grow from strength to strength. In essence, we are fully committed to economic reforms even though, at times the pace does not match expectations – perhaps the price we pay for democracy! But it is important that our economic growth is inclusive and the benefits percolate to as many people as possible so that we do not end up increasing the gap between the haves and the have-nots.

In my opinion, given the maturity and the opportunities the Indian Economy offers, the Budget exercise should not be the ‘great annual event’ it is made out to be with wish lists and expectations of major policy initiatives. These should happen throughout the year as and when required.

Corporate India is in fairly good shape. Confidence levels are high and the Economy is intrinsically sound, so there is no real need for sops and handouts. The government of course has a role to play: by acting as an enabler and ensuring that it creates a conducive economic environment, removing ‘speed-breakers’ and ensuring that the industry retains its value proposition and competitive advantage.

While the corporate sector gets on with business, the government should address issues like removing bureaucratic hurdles and red-tape, simplifying procedures and creating a level playing field. It needs to address strategic issues like promoting technology and innovation, and the increasing challenge of skilled and trained human resources.

What we need the Finance minister to address is the speedy implementation of administrative and fiscal reforms and doing away with non-value added and antiquated practices. For instance, in the new VAT regime, C-form submissions should be done away with as we reduce the central sales tax, as a step towards its eventual displacement. The LTU concept (large taxpayer unit) is a sound one and all VAT states should be connected for sales tax purposes.