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Revisit Subsidies and Revamp MNREGA (for asset creation)-FICCI

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Last Updated : May 23 2014 | 11:52 PM IST

FICCI Unveils a Wish List For The New Government

"The Nation has very clearly voted for development. FICCI congratulates PM-Elect Sri Narendra Modi for the overwhelming mandate received from the largest elections ever held. Sri Modi has charted a dynamic vision with determination to lead from the front. We look forward to renewed trust, sound governance and decisive actions as enabling factors to address needs and aspirations of both our entrepreneurs and youth" said Mr. Sidharth Birla, President, FICCI.

"Even as the Union Budget is a ripe opportunity to spell out key policies, fiscal imperatives and plans for implementation, the interim weeks must be liberally used by our Leadership to project its vision and set a progressive tone and direction. We also hope to see measures on inflation mitigation and restoring confidence, besides road maps on job creation and national competitiveness".

"Mission-mode actions and bold decisions are most likely to deliver tangible outcomes over 6-24 months" added Mr. Birla. FICCI has made certain suggestions via our agenda for Enabling India. FICCI assured the Government of its untiring efforts and participation in developing positive policies leading to job creation and growth across regions and sectors - particularly manufacturing".

"Enabling India": FICCI's agenda for the new government

The Imperatives

Broad-based regular communication from PM's level

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Cabinet-led decision making with full authority and accountability

Roadmap to 8% growth by 2017 and 10%+ by 2020

Creation of a Food Inflation Response & Strategy Team (FIRST) under PMO

Outline National Agenda for Job Creation

Strong Centre-State linkages, greater decentralization for development

The Important

1. Mitigate Food Inflation

De-list horticulture products from APMC Act

Higher Production/Productivity measures

Focus on post-harvest distribution infrastructure

Enhance Milk production ('White Revolution')

Enhance Fruit & Vegetables production ('Rainbow Revolution'); use of arid land

2. Revenue / Expenditure Management

GST in 2015

Revisit Subsidies and Revamp MNREGA (for asset creation)

Review DTC - inter-alia need for conducive environment for taxpayers

3. Address Tax Environment

End Tax Adventurism

Resolve Retrospective/Capital Raising related tax issues

Retrospective actions, if at all, must invariably favour the taxpayer

Rebated Income Tax for small, start-up businesses linked to employment creation

4. Strengthen Legal & Judicial Infrastructure

5. Sustainable Balance of Payments

Resolve Coal/Iron Ore impasse

Market based fuel pricing/tackle subsidies to curtail oil import impacts

Moderate import dependence for natural resources and commodities

Inspire FDI for exports, mitigate defence imports

6. Reform Factors of Production

Labour - Flexibility in labour laws

Energy - Private sector participation in coal sector; resolve gas pricing

Land - Comprehensive review of Land Acquisition Act

Capital - Deepen equity markets, re-capitalise and consolidate public sector banks (bring down government equity)

7. Fast Track Project Investments

CCI and PMG to continue with PMO monitoring

Policies must balance between environment & development

Dispute resolution on natural resources to trigger investments

8. Accelerate Infrastructure Development

2-3 mega infra projects (e.g. high speed passenger train corridors, pucca roads to each village)

PPP advisory unit to revive stalled projects

Large PPP infra projects to have pre-bid composite clearances

Privatization of ports

9. Improve Governance

Review regulations to eliminate redundancy and control-orientation

Inter-ministerial co-ordination under an 'umbrella' structure e.g. energy, infra, mining/steel

States' flexibility on certain concurrent list subjects particularly labour and environment

Implement Damodaran Committee suggestions on ease-of-doing-business

Principles based allocation of Natural Resources - no discretion

10. Economic Diplomacy

Creation of 'Gateways for Global Capital' - East & West - FICCI offers to lead the concept

Green Channel priority to hi-tech and export oriented FDI

Involvement of States & Indian Missions to enhance diplomacy initiatives

Critical review of FTA framework for greater market access for India

11. Dividend of Better Education & Skill Development

Development of faculty, digital learning, skills qualification framework, etc.

12. Improved Healthcare & Wellness

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First Published: May 23 2014 | 3:28 PM IST

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