After allowing FDI in retail, 6 more things government can do to further revive investments

The recent reforms burst from the government has polarised the polity, making it difficult for the government to push through measures that require political consensus. But there is lot more the UPA can still do to revive investments and improve business sentiment. ET takes stock

1) Get Stalled Projects Going

Why important: Investments can pick up pace if stalled projects are fast-tracked

What can be done: P Chidambaram’s idea of National Investment Board can be quickly put in place

2) Recast Environment Rules

Why important: Delay in forest & environment clearances has stalled most mining projects

What can be done: A policy based on cost-benefit analysis that allows clearance in lieu of adequate environmental compensation or effort

3) Speed Up Direct Taxes Code

Why important: Provide a long-term & stable tax regime

What can be done: Standing committee report available. The government has to take a call on some of the recommendations

4) Repair Government Finances

Why important: Years of high fiscal deficit can depress growth, raise interest rates and inflation

What can be done: Move to a system of direct transfer of subsidies, strict law to prevent fiscal excess

5) Rescue Railways

Why important: Years of populism has landed the Railways near brink of disaster

What can be done: Raise passenger fares and find more non-traditional revenues

6) Get Companies Bill Passed

Why important: Needed to improve corporate governance and for better regulation of companies, apart from easing regulatory burden on business

What can be done: Delay by the government; standing committee recommendations already available; not much political opposition