Entirely dismantle licensing, inspection and compliance regime

NEW DELHI: The Economic Survey 2022-23 on Tuesday recommended entirely dismantling the licensing, inspection and compliance regime, and a host of other reforms to accelerate economic growth to sustained higher levels.

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, it said.

The government, however, imparted a new dimension to these reforms in the last eight years. 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 economys potential growth, it said while listing out reforms undertaken by the Modi government since 2014.

The Survey said while the new age reforms undertaken over the last eight years form the foundation of a resilient, partnership-based governance ecosystem and restore the ability of the economy to grow healthily, further reforms are needed to ensure that economic growth can both accelerate and be sustained at higher levels, to deliver a better quality of life. “The deregulation and simplification of compliances should continue to dismantle the licensing, inspection and compliance regime entirely,” it said.

Further, state governments have to address power sector issues, and the financial viability concerns of the Discoms have to be addressed.

Impetus must be given to education and skilling to match the requirements of modern industry and technologies, deal with twenty-first-century challenges such as climate change and energy transition, and make the most of India’s demographic dividend.

“Initiatives to sensitise the population towards a healthy lifestyle should be continued. Strategies to arrest and reverse the rising obesity levels should be adopted,” the survey added.

Other reforms suggested, include long-range plans to secure the necessary metals and minerals required for energy transition and diversification, and public sector asset monetisation.

It also underlined reforms to reduce the compliance burden on MSMEs, enhance their access to finance and working capital and equip them with skills, knowledge and attitude to grow their businesses responsibly must continue.

If the other reforms are pursued in the coming years, “India’s potential GDP growth can rise to 7-8 per cent per annum in the medium term”, said the survey.

The 414-page document notes that the years of structural reforms had prepared the Indian economy to contribute to global growth and also benefit from it.

The survey said 2014-2022 is an important period in the economic history of India. The economy underwent a gamut of wide-ranging structural and governance reforms that strengthened the economy’s fundamentals by enhancing its overall efficiency.

Under normal circumstances, reforms of such scale and relevance would have accelerated economic growth, it added.