Latest reforms to accelerate investments
Opening up of all economic sectors to private businesses is a major breakthrough which will significantly push industrial and socio-economic development in the country, said Dr D K Aggarwal, President, PHD Chamber of Commerce and Industry.
String of latest economic reforms will accelerate private sector investments in the country, placing it in a better position in the global economy and make it attractive destination for the foreign investors, he said in a release on 17 May 2020.
He was commenting on reforms announced for improving ease of doing businesses, employment generation, ramping up health and digital educational infrastructure, reforms in insolvency and bankruptcy code, he said.
The decision to allocate an additional Rs.40,000 crore under MGNREGS will help in generating employment opportunities and boost rural economy through higher production, believes Dr Aggarwal.
The focus of the Government in increasing public expenditure on health and investment in grass root health institutions will ramp up health infrastructure in rural and urban areas, Dr Aggarwal hoped.
Announcement on IBC reforms including raising minimum threshold to initiate insolvency proceeding to Rs.1 crore from Rs.1 lakh, suspension of fresh initiation of insolvency proceedings up to one year and excluding COVID-19 related debt from the definition of default will lead to enhancement of ease of doing business in the coming times, said Dr Aggarwal.
Reform of decriminalisation of Companies Act violation including technical and procedural defaults will de-clog the criminal courts and NCLT and provide much needed relief to the industry stakeholders, said Dr Aggarwal.
Announcement for corporates including direct listing of securities by Indian public companies in permissible foreign jurisdictions, lower penalties for all defaults of small companies, one person companies, producer companies and start-ups, among others will significantly improve our ease of doing business rankings, said Dr Aggarwal.
The significant reform of introducing new Public Sector Enterprise Policy will provide an excellent platform for private sector to leverage the opportunities in all sectors of economy including strategic sectors too, said Dr Aggarwal.
Launching of PM eVIDYA programme for multi-mode access to digital/online education will contribute significantly to technology driven education system in the coming times, said Dr Aggarwal.
Reforms announced for supporting State Governments including borrowing limits of States being raised from 3% to 5% for 2020-21 only and to promote state level reforms part of the borrowing will be linked to specific reforms like increasing job creation through investment and promoting urban development, health and sanitation will go a long way in percolating the benefits at grass roots level, according to Dr Aggarwal. fiinews.com
