ASSOCHAM calls for next generation reforms

New Delhi, Nov 22 (IBNS) As the UPA II completed its mid-term, industry body ASSOCHAM on Tuesday called for a determined push to implement second generation reforms in finance, banking, insurance, taxation, infrastructure funding and many other sectors in agriculture, industry and services.

The negative perception of decision-making paralysis within the government must be reversed now, or else the opportunity will slip by, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM) in an analysis of UPA 1 performance and agenda for the next term (available at www.assocham.org).

A uniform Goods and Services Tax with a simplified and long-term Direct Taxes Code can electrify business prospects. This will restore business confidence and bring in foreign investors looking for robust bond and corporate debt markets.

Early implementation of market-driven pricing of oil products is imperative to reduce subsidy outgo and conserve oil and gas resources. The government must announce deadlines for introducing inclusion programmes like food security, universal healthcare, insurance and housing.

This should help in re-connecting with people at large amid corruption scandals and perception of policy paralysis. "It is important to gain people's confidence that the United Progressive Alliance means business. However, ways beyond tightening monetary supply must be explored to control upward spiraling inflation."

The government must find a work-able formula to acquire land acquisition for industries and creating urban clusters. The draft Land Acquisition Bill and R & R Bill should instill confidence among urban infrastructure developers when the urban population set to reach half a billion by 2020-end.

At the same time, it should compensate farmers with reasonable returns and they should be made partners in the process by providing employment and business opportunities.

There cannot be a compromise on a nine per cent plus GDP growth target if poverty is to be reduced, said ASSOCHAM. The linkage between growth rate and poverty reduction is getting diluted in public perception due to many external factors.

The growth-inflation conundrum has to be cracked and supply side must get precedence over monetary measures. In this context, multi-brand retail and supply chains with significant foreign investments will energise both farms and industries as well as pull down consumer prices.

Investments and industrial outputs must rise to take care of the supply side and growth. "Governance transformation and attack on corruption can be simultaneous. UPA II should give a boost to e-governance, expand high-speed wireless broadband access across the country, and encourage online procurement and contract awards

Much has already been achieved through e-ticketing for railways, e-access for many government sectors including land records, filing income and other taxes. The National Broadband Policy to network all villages with high-capacity optical fibers and last mile connectivity though wireless appears to be stuck at the moment.

"This is an unacceptable situation and needs to be remedied at the earliest," said ASSOCHAM.

The performance evaluation system devised by the Cabinet Secretariat for all higher level officers needs to be widely publicised and put into practice. The government has to demonstrate that the popular perception of policy and administrative paralysis is a thing of the past.

"It must recapture public imagination to counter diversionary agitations through these reformist steps."

The logjam in power and coal sectors needs to end and civil liability rules for the nuclear power programme must get off the ground. The government must educate people on benefits of nuclear energy and be firm with elements stirring undue fears against nuclear energy.

"The government has to demonstrate its capacity for leadership before public perception builds up into a loss of faith in it, and in the current governance system," said ASSOCHAM.