End 'decision-making paralysis': Industry to UPA

Reminding the UPA-II government about the need to reverse the negative perception of a 'decision-making paralysis', industry body Assocham has made a pitch for second-generation reforms in various sectors, including finance, banking, taxation and agriculture.

The negative perception of a 'decision-making paralysis' within the government must be reversed now, or else the opportunity would slip by, the Associated Chambers of Commerce and Industry of India (Assocham) said.

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

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 as well, Assocham said.

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"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 spiralling inflation," it added.

The government must find a workable formula to acquire land for industries and create urban clusters, the chamber said.

The draft Land Acquisition Bill and R&R Bill should instil confidence among urban infrastructure developers, with the urban population set to reach half a billion by 2020-end, it said.

At the same time, the proposed law should compensate farmers with reasonable returns and they should be made partners in the process through employment and business opportunities, it said.

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There cannot be a compromise on the 9 per cent-plus GDP growth target if poverty is to be reduced, Assocham said, adding that the linkage between the growth rate and poverty reduction was getting diluted in the public perception due to many external factors.

The growth-inflation conundrum has to be cracked and supply side issues must get precedence over monetary measures.

In this context, multi-brand retail and supply chains with significant foreign investments would energise both farms and industries, as well as pull down consumer prices, it said.

Investment and industrial output must rise to take care of supply side and growth.

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"Governance transformation and an 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," Assocham said.

Much has already been achieved through e-ticketing for railways, besides e-access to government services like land records and filing of income tax and other tax returns.

The National Broadband Policy to network all villages with high-capacity optical fibres and last-mile connectivity though wireless appears to be stuck at the moment, the industry chamber noted.

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

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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," Assocham said.

The logjam in the 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 the benefits of nuclear energy and be firm with elements stirring up undue fears about 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," it added.