Transcript India and the Knowledge Economy

India and the Knowledge Economy:
Leveraging Strengths and Opportunities
Prioritising key Issues in the
Economic and Institutional Regime
November 9 2004
New Delhi
Economic and Institutional Regime
List Key issues
Categorise : Priority
Missing?
Economic and Institutional Regime : List
• Positives
• Negatives
Local Competition
• Neutral
Press Freedom
Gross Capital Formation
Regulation of Financial Institutions
Soundness of Banks
IPR
Budget does not balance
Trade as % of GDP
Tariff and Non Tariff
Barriers
Economic and Institutional Regime: List
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Fiscal Position
Productivity of Public Sector
Lackluster Performance of Civil Service
FDI limits
Low Global integration
Slow down in Industry and Services
Untapped role of Diaspora
Conducive Investment Climate
Cost of Doing Business in India
Slow legal system
Economic and Institutional Regime : List
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Reduce and Simplify Tariff
Eliminate Preferential policy for SSI
VAT
Phase out FDI restrictions
Improve IPR
Reduce/Remove restrictions on Labour
Credit to SME’s / Venture Capital
Bankruptcy laws
Land reform
Customs
Power sector reforms
Transport Sector reforms
Use of ICT to improve Government performance
Economic and Institutional Regime : Top 7
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Fiscal System : Deficits
Infrastructure
Conducive Investment Climate
Speed Legal Process
Unified Taxation policy – VAT / GST
Use of ICT
Reduce and Simplify Tariff
Economic and Institutional Regime
:Infrastructure
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Integrated approach : Energy vs Power
Plan for 25 years ahead
Regulatory Framework
End to end solution : Transportation :Raw Material to Factory and
Factory to Market
Tariff Reform to enable sustainability
Economic and Institutional Regime :Conducive
Investment Climate
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Simplify Business Processes
Integrate Market
Uniform processes : Use ICT
Uniform Laws
Uniform regulations and standards
Review Acts
Start with Sectors of Common interest to State : Food Processing
Bio Technology
Transport
Economic and Institutional Regime :
Speed Legal Process
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Review CPC, CrPC
Introduce Standard time Bound Procedures
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Filing
Evidence
Arguments
Judgment
Appeal
Penalties
Use ICT in Courts
Economic and Institutional Regime : Unified
Taxation policy – VAT / GST
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VAT a good first step but GST?
Review local taxes if not eliminate rationalise and equate : Uniform one
market ?
Economic and Institutional Regime :
Use of ICT
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Leverage Work done
Standardise use formats that have worked
Enforce Standards
– Election Commission
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Move to Outsourcing ?
Economic and Institutional Regime: Difficult
Issues
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Work with NGOs, Associations
Create Documents
Provide Forums
Develop an agreed agenda for India
Influence Change