AIAI Urges Prime Minister to Continue Reforms to Increase Ease of Doing Business in SME and Agriculture Sectors » Yes Punjab

In a note to the Prime Minister, Dr. Vijay Kalantri, Chairman, All India Association of Industries or AIAI congratulated Shri Narendra Modi on assuming the post of Prime Minister of India for the third time and expressed hope that reforms in various sectors would continue or even gain momentum to empower the entire business class segment, especially the small and medium-sized enterprise sector and the agricultural sector.

AIAI calls on the government to promote research and development and investment in the agricultural sector to increase productivity, diversify crop patterns and increase farm productivity.

Dr Kalantri believes that the rural economy needs significant support by reforming the MSP system, increasing investment in agriculture, post-harvest infrastructure, skill development, food processing parks, rural roads and power connections. These actions will increase employment opportunities in rural areas and stimulate wage growth in rural areas.

To fulfill the Hon’ble Prime Minister’s vision of India becoming the third largest economy by 2030 and a ‘developed economy’ by 2047, India must improve regulations from central, state and local governments that increase the cost of doing business, especially for small and medium-sized enterprises that operate on small margins and are unable to compete at a global level.

Says Dr Kalantri: “The new government can continue its reform agenda, particularly in areas such as labor law, environmental permits, single-site clearance and post-investment care, to improve the attractiveness of investing in the country.

There is also a need to continue public investment in infrastructure, ports, rail and road connections, and industrial corridors to reduce logistics costs.

The memorandum submitted to the PMO also details steps to be taken to improve skills and employability, boost women-led economic development, establish a mechanism for reviving sick MSME units that have growth potential, promote credit to the MSME sector,

modernize power transmission and distribution infrastructure to reduce the average electricity tariff, implement sweeping tax reforms, including bringing power, fuel and other sectors under the GST regime, simplify the capital gains tax structure and TDS structure, and create a consolidated fund for municipal authorities and the transfer of tax revenues to these local authorities.

Adds Dr. Kalantri: “Over the next 5 years, the government must also develop ways and means to reduce dependence on energy imports, accelerate the adoption of pending laws such as the Insurance Amendment Act, the National Financial Information Register Act, the Insolvency and Bankruptcy Code, the Insolvency and Bankruptcy Amendment Act, Act on Medicines, Medical Devices and Cosmetics and so on.

AIAI in its memorandum also specified details regarding finalization of provisions of the Digital Personal Data Protection Act, acceleration of privatization, especially of public sector banks, change of SEZ policy, strengthening industry-academia cooperation, facilitating technology transfer,

conducting another socio-economic census to identify economically backward households to leverage government subsidies, reducing dependence on edible oil imports, reforming trade policy, correcting the inverted duty structure where imports of finished goods are taxed at a lower rate than imports of intermediate goods,

which discourages local production and also promotes formal jobs in the industrial sector by facilitating investment in labor-intensive industries such as food processing, textiles, construction, real estate, tourism, etc.

These measures will boost private capital spending, investment and job creation in the medium and long term. India is also in an advantageous position to attract foreign investment as it is a beacon of growth and stability in this uncertain global geopolitical order.