The Narendra Modi government has undertaken several reform initiatives since assuming power but there are still challenges which the Indian economy faces and the government is committed to resolve them in the new year, finance minister Arun Jaitley has said.
“Investment needs to be enhanced and encouraged. Infrastructural spending has to be stepped up. Manufacturing sector has to be given a major push. This has to be done both through encouraging public and private investment. This is our resolve for the upcoming year,” Jaitley said.
The government has unveiled a series of reform initiatives since it came to power after its stunning election victory in May. “In the past seven months, the government has undertaken more reform oriented measures than any government in recent memory,” Jaitley said.
Some of the steps include outlining the vision of cooperative federalism through the creation of successor to the Planning Commission. The new structure would provide an alternative to the command and control economy.
Building a national consensus and introducing a bill to amend the constitution to implement the Goods and Services Tax (GST), opening the gates of investment by raising FDI limits in insurance, defence and railways and liberalizing FDI conditions in real estate.
The government has issued an ordinance to amend the complicated procedures of the land acquisition law. “The new law facilitates development but balances it with higher compensation, relief and rehabilitation measures for the farmers. Compensation and resettlement and rehabilitation package has been made entirely applicable to the 13 exempted laws,” Jaitley said.
He said the government cleared the mess in the coal and power sector, a law has been introduced to facilitate a transparent and non-discretionary method of allocation of coal blocks.