The government has set up 12 committees composed of top officials to devise ways to boost long-term economic growth amid global uncertainty. A person familiar with discussions in government said councils are working to ease the compliance burden on businesses, encourage private investment in infrastructure, support small businesses and promote job creation.
Based on the proposals, the government will draw up a plan to help India match developed country parameters in these areas and create the infrastructure that will enable growth over the next 25 years, the person said. know. The committees have representatives from the states and territories of the Union.
The move comes at a time when India’s exports and job creation are being adversely affected by a drop in global demand due to rising interest rates. The government has been increasing spending on infrastructure projects to stimulate private investment and spur economic growth.
12 working groups based on six sub-themes of two major pillars—growth and job creation; and integral human development. The six themes include reducing regulatory compliance, infrastructure and investment, promoting small businesses, women’s empowerment, health and nutrition, and skills development.
“Secretarians are working to identify specific milestones to be achieved in each of these areas over the next 25 years so that they are on par with developed country parameters. Based on these milestones, the specific plans and programs needed will be drawn up. That work is happening,” said a second person familiar with discussions within the government. The targets will soon be translated into action plans and will take into account the requirements of economic growth. and human resource development, the person said.
While Punjab leads the group on regulatory compliance reduction, the cost of regulation team is led by Tamil Nadu. The private investment improvement working group, led by Gujarat, focuses on manufacturing, housing and real estate and services sectors.
Madhya Pradesh is leading the group in urban infrastructure, urban transport, road and logistics, electricity and industrial infrastructure.
Micro, small and medium enterprises (MSMEs), hardest hit by the impact of monetization and the pandemic, occupy a prominent place in the discussion. Haryana is leading the team to formalize, assess and close the credit gap for MSMEs across industries and coordinate Federal and Union government efforts towards inclusion.
The main recommendations of these groups will be discussed during the second National Secretary-General’s Conference to be held in 2023.
Various projections have pegged economic growth for the current fiscal at close to 7%. Emails sent to finance ministry and NITI spokesman Aayog on Tuesday seeking comment for the story remain unanswered.
Madan Sabnavis, chief economist at Bank of Baroda, said India needs to create an infrastructure conducive to growth.
“The focus on reducing regulatory compliance has always been on the government agenda, but a push from the states is needed. This will also help improve the flow of private investment as the industry looks at different states and then calls for investment. If we take this seriously, it creates a competitive spirit where states work to attract more investment, which in turn helps create jobs,” said Sabnavis. liquid, he added.
“This will help a lot over time. Therefore, as we wait for the demand cycle to become more favorable, which is what drives investment, these clean-ups should drive investment to more open states,” he added. .
The Coalition Government has allocated $$1 trillion as an interest-free 50-year investment loan to states in fiscal year 23 to fund new or ongoing projects.
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