Economic Survey 2014: 7 commandments for new govt to revive India's growth

NEW DELHI: The Economic Survey has spelt out seven commandments for the new government to resuscitate India’s growth engines and create an environment to accelerate investments.

Wide-ranging structural reforms to ease supplyside constraints and sector-specific steps should be the top priority of the government setting out to lift the country’s struggling economy from decadal lows, the survey said.

Reflecting India Inc’s overarching concerns, the survey said the government should simplify tax policy and administration, repeal archaic laws and put in place an effective dispute resolution mechanism to lend greater predictability to policy-making in the country.

There cannot be a compromise on fiscal consolidation if the country has to attain high growth.

“Strengthening macroeconomic stability, a non-negotiable instrument for stable and faster growth, is predicated on fiscal discipline, price stability and managing current account balance,” it said.

Farming sector needs an investment booster to ensure high productivity, the survey said, pitching for reforms in procurement, marketing, transport, storage and processing.

Revival of manufacturing sector will be the key if the country is to harness its demographic dividend, it said.

The survey called for policy attention to rural non-farm sector, manufacturing sector and labour-intensive segments of services sector.

Physical infrastructure, which is bursting at the seams in both rural and urban areas, will be the key to regaining and sustaining economic momentum, it said.