The Indian government has imparted a new dimension to reforms in the last eight years, as they focused on creating public goods, adopting trust-based governance, co-partnering with the private sector for development, and improving agricultural productivity, according to the Economic Survrey 2022 – 2023.
“This approach reflects a paradigm shift in the growth and development strategy of the government, with the emphasis shifted towards building partnerships amongst various stakeholders in the development process, where each contributes to and reaps the development benefits (Sabka Saath, Sabka Vikaas),” the Survey said.
Finance Minister Nirmala Sitharaman tabled the Survey in the parliament today. The Survey is prepared by the finance ministry’s Chief Economic Adviser V Anantha Nageswaran.
With an underlying emphasis on enhancing the ease of living and doing business and improving economic efficiency, the reforms are well placed to lift the economy’s potential growth, the Survey said.
The reforms undertaken before 2014 primarily catered to product and capital market space. They were necessary and continued post-2014 as well. The government, however, imparted a new dimension to these reforms in the last eight years, it added.
“A quantum leap in policy commitment and outlay for infrastructure is now visible in the last few years, cushioning economic growth when the non-financial corporate sector was unable to invest due to balance sheet troubles,” Survey said.
This has helped lay a good platform for crowding in private investments and growth in the coming decade.
The government’s emphasis on developing public digital infrastructure during the last few years has also been a game changer in enhancing the economic potential of individuals and businesses.
Consistent reforms have been made during the last eight years in building trust between the government and the citizens/businesses, which unleashes efficiency gains through improved investor sentiment, better ease of doing business, and more effective governance.
Another significant reform to enhance doing business has been the decriminalisation of minor economic offences.
The Survey said that the taxation ecosystem in the country has undergone substantial reforms in the post-2014 period.
“Tax policy reforms such as adopting a unified GST, reducing corporate tax rates, exemption of sovereign wealth funds and pension funds from taxes, and removing the Dividend Distribution tax have reduced the tax burden on individuals and businesses; and have removed the distortionary incentives from the economy.”
The Modi-government has also taken significant initiatives under Aatmanirbhar Bharat and Make in India programmes to enhance India’s manufacturing capabilities and exports across the industries. Additionally, the government is developing enabling infrastructure for making India a cost-effective production hub.