As the Modi government regains the reins of the country with a bigger mandate, the industry is expecting bold reform measures in order to propel the economy.
India’s jobs problem can be tackled with the help of online aggregators and food and taxi services such as Zomato, Swiggy, Uber, Ola, etc, a senior industry leader has said. “The government must focus on the new age business and also the start-up domain for the creation of more jobs,” said Sandip Somany, President, FICCI (Federation of Indian Chambers of Commerce and Industry). As the Modi government regains the reins of the country with a bigger mandate, the industry is expecting bold reform measures in order to propel the economy. This can be done with 100-150 points basis repo rate cut by the RBI, encouraging agriculture imports, massive reduction in the cost of business operations and a flexible hiring framework, the industry body proposed in a statement.
Among FICCI’s further suggestions, the government must also look into creating a separate ministry for employment, Sandip Somany added. In a submission to the government, FICCI has proposed points for its agenda. Those are — “passage of the pending Bills, the announcement of policies (including E-commerce, Industry, Retail and E-pharmacy), simplification of GST, lowering of interest rates, addressing farm distress and creation of an ecosystem that promotes employment”.
Speaking on the reforms needed in creating enabling business environment, the FICCI president said that the corporate tax for all the companies must be brought down to 25% from the current 30%. Building upon the work that the Modi government did in its first tenure such as GST, RERA, and IBC, the government “can usher in the next wave of reforms, especially in the important areas of land, labour and judiciary,” said FICCI’s Sandip Somany.
Targeting rural distress
Calling the direct income support a step in the right direction, Sandip Somany said that the scheme needs to be strengthened. However, by creating a better infrastructure to support agriculture, rural distress and farmer’s problems can be handled better. This includes irrigation and warehousing facilities. Furthermore, reforms are needed so that farmers’ cost of production and selling is reduced. Value addition in agriculture is another area to look at.