Lower costs, faster growth

Reducing the cost of doing business gets little attention, but it's a key structural reform that would enable India to grow at 8-10 per cent a year for over a decade

There is a healthy debate on whether the economic downturn is cyclical or structural, or both. The government has announced stimulus packages and there is ongoing commentary on their likely impact. Then, there is renewed advocacy of reform measures such as disinvestment in public sector undertakings and banks, as well as change in labour laws.

However, one core issue does not get enough attention. This is the cost of doing business in India. It is much too high and adversely impacts competitiveness. A holistic assessment and a sustained effort to reduce costs for business would be a key structural reform that