Everyone wants reform. But few can name more than 3 or 4. Just listed the 29 BIG reforms from Current Govt.
As we know the current Govt has been trying hard to push for reforms but we are least aware what are they . Just thought of highlighting those.Hopefully all of the reforms will be completed very soon amicably .....
S.No
|
Reform Name
|
Status
|
How Difficult For Govt to pass
|
More Info
|
1
|
Direct Benefit Transfer
|
In Progress
|
High
|
The government is pushing for this
reform, but progress depends on state capacity and commitment.
|
2
|
Allow More than 50% FDI in
Insurance
|
In Progress
|
High
|
Parliament on 3/12/2015 approved
amendments to India’s Insurance Act that increase the FDI cap from 26% to
49%.
|
3
|
GST
|
Incomplete
|
High
|
The Lok Sabha passed the GST Bill
(122nd Constitutional Amendment) on 5/6/15, but the legislation is stalled in
the Rajya Sabha.
|
4
|
Deregulate Kerosene Price
|
Incomplete
|
High
|
Deregulating kerosene pricing will
lower government subsidies and also encourage the expansion of private
hydrocarbon production.
|
5
|
Remove Govt mandated minimum prices
for agricultural goods
|
Incomplete
|
High
|
Removing minimum support prices
will reduce the government’s subsidy burden and help end the over-production
of staple grains
|
6
|
Deregulate Fertilizer Prices
|
Incomplete
|
High
|
On 5/13/15 the government announced
a new four-year urea policy that will continue the price regulation regime.
|
7
|
Allow foreign lawyers to practice
in India
|
Incomplete
|
High
|
Allowing foreign law firms to
establish offices and practice law in India will lower barriers to doing
business in India.
|
8
|
Relax government controls over
corporate downsizing
|
Incomplete
|
High
|
India’s Industrial Disputes Act
sets a floor of 100 employees after which government permission is required
to lay off workers. Some firms choose to remain below this level, giving up
growth opportunities, in order to retain flexibility
|
9
|
Make it Quicker and Easier for
companies to go through Bankruptcy
|
Incomplete
|
High
|
On 11/4/2015 the Finance Ministry’s
“Bankruptcy Reforms Law Committee” issued its report on a model law, as well
as draft legislation
|
10
|
More than 50% FDI in Railways
|
Complete
|
Low
|
DIPP Press Note 8 (2014), issued
8/27/2014, opened most of the railways sector to 100 percent FDI.
|
11
|
Allow Foreign Investment in more
construction projects
|
Complete
|
Low
|
A DIPP Press Note , issued
11/10/2015, removed almost all restrictions on FDI in construction, including
minimum project size, and reduced the lock-in period for capital to three
years.
|
12
|
Extended the Expiration date of
industrial licenses
|
Complete
|
Low
|
DIPP Press Note 9 (2014), issued on
12/20/2014, increased the maximum validity of an industrial license from two
years to seven years.
|
13
|
Allow More than 50% FDI in retail
e-commerce
|
In Progress
|
Low
|
A DIPP Press Note , issued
11/10/2015, allows single-brand retail operations and all Indian
manufacturers to engage in e-commerce. FDI is allowed in single-brand retail
as long as 30% of products sold are manufactured in India.
|
14
|
Raise the ceiling on foreign
institutional investment in Indian companies
|
Incomplete
|
Low
|
The long-standing 10% limit on
single institutional investors hinders investment in high-growth Indian
companies. SEBI raising this threshold — even to 20% — will unlock
significant liquidity for listed Indian companies.
|
15
|
Deregulate Diesel Pricing
|
Complete
|
Medium
|
The government deregulated diesel
pricing on 10/18/2014.
|
16
|
Fully open the coal/mining sector
to private/foreign investment
|
Complete
|
Medium
|
Parliament approved the Coal Mines
(Special Provisions) Act, 2015 on 3/20/2015, opening the sector to
private—including foreign—investment.
|
17
|
Conduct transparent auction of
telecom spectrum
|
Complete
|
Medium
|
In March 2015 the government
conducted a simultaneous auction across several bands recently freed by the
Ministry of Defence.
|
18
|
End of retrospective taxation of
cross-border investments
|
In Progress
|
Medium
|
On 8/28/14 the Central Board of
Direct Taxation announced the formation of a 3 member panel to “screen” use
of the retrospective principle.
|
19
|
Deregulate Natural Gas Pricing
|
In Progress
|
Medium
|
The government increased the
ceiling price of natural gas on 10/18/2014.
|
20
|
Use Direct Benefit Transfer to deliver
cash subsidies
|
In Progress
|
Medium
|
The government is gradually
increasing the number of cash-transfer schemes that use DBT, but has faced
implementation issues.
|
21
|
Allow more than 50% FDI in Defense
|
In Progress
|
Medium
|
A DIPP Press Note , issued
11/10/2015, makes approval of FDI up to 49% automatic, with higher levels
permitted on a case-by-case basis.
|
22
|
Reduce Restriction of Foreign
Investment in Multibrand Retail
|
In Progress
|
Medium
|
A DIPP Press Note , issued
11/10/2015, relaxes sourcing rules for foreign-owned retailers that offer
“cutting-edge technology” and makes it easier for other retailers to meet the
sourcing requirements.
|
23
|
Reduce Restriction of Freign
Investment in Single Retail
|
In Progress
|
Medium
|
A DIPP Press Note , issued
11/10/2015, relaxes sourcing rules for foreign-owned retailers that offer
“cutting-edge technology” and makes it easier for other retailers to meet the
sourcing requirements. The Press Note opens ecommerce to foreign-owned single
brand retailers, too
|
24
|
Establish Process For Thoughtful
financial regulations
|
In Progress
|
Medium
|
The Ministry of Finance in December
2013 issued a guidebook for financial regulators on adopting stronger
regulatory governance practices. Adherence has been modest, however.
|
25
|
Institute a 30 day notice and
comment period for proposed regulations
|
In Progress
|
Medium
|
The Ministry of Law & Justice
sent a letter on 2/5/2014 to all ministries, urging them to comply with a 30
day notice & comment period and other rules. Implementation has been
inconsistent.
|
26
|
Stop forcing banks to lend to
priority sectors
|
Incomplete
|
Medium
|
The Ministry of Law & Justice
sent a letter on 2/5/2014 to all ministries, urging them to comply with a 30
day notice & comment period and other rules. Implementation has been
inconsistent.
|
27
|
Make it easier to start a business
by offering one-stop shopping solutions
|
Incomplete
|
Medium
|
The World Bank’s “Doing Business”
report notes that India requires 12.9 procedures to start a business—well
above the South Asian average (7.9 procedures). Link is the same as above.
|
28
|
Ensure that business owners can
receive a permit in 10 days or less
|
Incomplete
|
Medium
|
The World Bank’s “Doing Business”
report notes that it takes on average 29 days to start a business in India.
That’s nearly double the South Asia average (15.7 days). The OECD average is
8.3 days.
|
29
|
Allow cities to issue municipal
bonds to raise funds
|
Incomplete
|
Medium
|
Creating the policy, legal,
accounting, and reporting framework for local governments to issue municipal
or project revenue bonds will spur the creation of this financing option.
|
Disclaimer :
he data are taken from Center for Strategic and International Studies
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