All of them agreed upon the reforms needed in India’s Ease of Doing Business policy
Narendra Modi is back in power with an overwhelming majority and with this, industry experts have started sharing their expectations from the next government. As the Indian industry seeks many reforms, the next government will not be short of work to do in this particular segment with a long wishlist already revealed by industry veterans such as Biocon’s Kiran Mazumdar Shaw, Marico’s Harsh Mariwala, and Mahindra group’s Pawan Goenka. While all of them agreed upon the reforms needed in India’s Ease of Doing Business policy, others also nodded for amendments in land, labour and capital laws, they said in an interview to CNBC TV 18.
Kiran Mazumdar Shaw
Addressing the prevailing agrarian distress and consumer slowdown, the Biocon founder said that the government should introduce a single GST slab to revive the economy. There is an immediate and urgent need for GST rationalisation. She also spoke about how the rural economy needs focus to tackle the agrarian stress. “Sluggishness in the consumer sector is a cause of worry,” she told CNBC TV 18.
Along with this, the industry could be helped by more reforms including the replacement of annual renewals of licenses with a perpetual license. Kiran Mazumdar Shaw also opined that getting rid of half of the regulations will make it better for industrials to work. The need of the hour is to focus on Ease of Doing Business policy and also the restructuring of e-commerce policies to make them more pragmatic.
Managing Director of Mahindra and Mahindra, Pawan Goenka echoed the need to improve Ease of Doing Business policy. The cost of operations should be brought lower, which includes the cost of logistics, land acquisition and manufacturing costs. However, he further added that alone won’t be enough. The biggest concern for the Modi government will be job creation, said.
The chairman of FMCG brand Marico, Harsh Mariwala said that the labour laws need to be reformed in terms of flexibility. This will enable industries to establish as many industrials shrink from the prospect of operating one because of strict laws. Also, the judicial system needs to be reformed as the delays affect the industrialists. Resonating his fellow industrialists, he said that the ease of doing business is one aspect that the government can work upon.