Provide stable policy environmentThis is a must for getting new investments. Business needs clarity and certainty of policy and needs to know that there is sanctity of a contract. The cancellation of telecom licences and overturning of some other clearances has spooked the industry.
FDI in civil aviationThe sector is in financial difficulty, and a decision to allow foreign investment in it should not be a political hot potato.
Fast track large projectsInfrastructure needs a particular boost. The Prime Minister’s Office is streamlining the process for power projects. The Finance Ministry has created a cell for monitoring large projects. Projects in the pipeline need to be expedited so that confidence is built. Problems in clearances on land acquisition, environment, coal linkages, etc, need to be streamlined. Building of infrastructure such as roads, ports, power plants, airports, rail connectivity, and urban development must be taken up on priority.
Cut subsidiesWhile the budget has set a target of reducing subsidies to under 2 per cent of the GDP, this is a tough one. There is immense political opposition to reducing subsidies on diesel, fertilisers and foodgrains, and when inflation is already very high, it will have to be staggered.
Open multi-brand retailThis is a much needed big reform, and can go through without a Parliamentary logjam. The Cabinet has already taken a decision, which is on hold due to opposition from some states. Efforts are now on to push it again by building consensus, at least among some of the non-BJP ruled states. This will kill many birds with one stone — reduce food wastage, bring down food inflation, create supply chains, better prices for farmers, reduce retail prices for consumers, and bring big ticket investments from the likes of Walmart.
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