10 must dos to reignite growth

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P Chidambaram wound up his budget speech by dictating 10 commandments for the new government. He claimed his “vision for the future” would lift India’s sinking economy from the morass and make it the world’s third largest in the next three decades. Whether PC will find any takers in the next dispensation is debatable. But the 10-point plan is widely

expected form part of the UPA’s election manifesto.

Here’s how they stack up:

Fiscal consolidation: Must achieve fiscal deficit of 3 per cent of GDP by 2016-17 and retain it below that, going forward

Current account deficit: FDI, FII, ECB inflows necessary to finance CAD that will stay on in the foreseeable future

Inflation & growth: RBI must harmonise price stability with growth imperatives in its policy objectives

Financial sector reforms: Need for immediate implementation of recommendations by financial sector legislative reforms commission

Infrastructure: Must rebuild and add to our infrastructure backbone by adopting PPP and other proven models and creating new financing structures

Manufacture: Focus on export manufacturing. All central and state taxes on exported products must be waived or rebated, and minimum tariff protection given to India-made goods

Subsidies: Must choose absolutely necessary subsidies for the absolutely deserving

Urbanisation: Wealth must be tapped to rebuild our cities with new governance model.

Skill development: Skill development must rank alongside secondary education, university education, total sanitation and universal healthcare

Centre-state responsibilities: States must share financial costs of implementing flagship programmes so that the centre may allocate resources to defence, railways, national highways and telecommunications.

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