Gen-next economic reforms: Big ticket projects, slashed compliances

Following the Prime Minister’s bugle for ringing in next-generation economic reforms in his Independence Day speech, the government has clearly outlined a broad range of focus areas where it wants actionable ideas with expeditious implementation timelines. 

These include an ambitious push for big-ticket projects, projecting India as a destination for major investments, and slashing the compliance burden on enterprises and citizens. Heightened attention has also been sought for easing red tape encountered by Micro, Small and Medium Enterprises, and those engaged in foreign trade. 

A high-level panel on Implementation of Viksit Bharat Goals, under the chairmanship of NITI Aayog member Rajiv Gauba, has been tasked with monitoring and providing strategic guidance on programmes like Atmanirbhar Bharat, infrastructure projects and economic initiatives to attract investments.

 

The committee, according to its terms of reference, has also been entrusted with framing an action plan for economic development and employment generation, especially through big ticket projects such as doubling of mining output, power generation, renewable energy including green hydrogen, small and advanced modular reactors, and coal gasification. 

Strategising to attract and support major investment projects, such as those in sectors like semi-conductors, that are looking at India as a destination, is also part of the mandate of the panel that has been enabled to co-opt as well as consult experts and stakeholders from across sectors. 

Another high-level committee, also led by Gauba, on non-financial regulatory reforms, has been asked to recommend measures to reduce the overall compliances that citizens and firms encounter, including registration of entities with direct and indirect tax authorities, and steps to simplify administrative procedures and forms.  The panel has also been told to put the regulatory and compliance requirements under the Companies Act of 2013 under the scanner. 

Constituted last week, both panels have been granted a year to complete their mandate, but are required to submit an interim report to the Department of Economic Affairs every month, signaling the urgency the Centre has placed on ushering in the next generation reforms. 

The second panel, with representatives from the private sector, have been told to evaluate the relevance and usefulness of existing laws, rules, regulations, certifications and processes for all economic activities and suggest ways to simplify them or even eliminate them if they have no relevance and utility. Wherever feasible, the panel may consider avenues for people and firms to opt for self-certification and third party inspections, with some room for random checks as a monitoring mechanism. 

For foreign trade, the committee has been asked to review all procedures and rules, including those pertaining to Customs, and bodies like the Directorate General Foreign Trade (DGFT) and the Directorate General of Trade Remedies (DGTR). Approvals and compliances under the Environment (Protection) Act, 1986, and Water (Prevention and Control of Pollution) Act, 1974, will also come under scrutiny. 

The current practices of all certification bodies, including the Bureau of Indian Standards (BIS), the Food and Food Safety and Standards Authority of India, SSAI with the objective of streamlining and eliminating certification and rules wherever deemed appropriate. The committee would also focus on the requirements of MSMEs from the central government and its agencies in matters of registration, pre-establishment approvals and post-establishment operations such as inspections and compliances. 

While the government has been decriminalising several offences under different laws, the Gauba panel has also been asked to make specific recommendations to decriminalize the regulatory and compliance requirements as much as possible. 

Even as it has sought monthly interim reports from these committees, the Centre has made it clear that ministries are expected to continue to work on their own measures to promote the ease of doing business as an ongoing exercise rather than wait for the high-level committee’s recommendations. 

The government has also clarified that the Task Force on Compliance Reduction and Deregulation, as well as a Deregulation Cell formed this January by the Cabinet Secretariat, will continue to function with the objective of helping States and Union Territories in reforming procedures and regulations in their respective domains.