Govt embarks on second generation reforms for higher GDP

Kolkata, Jun 24 (UNI) Chief Economic Advisor to Government of India Ashok Lahiri today emphasised on pushing forward the second generation of economic reforms for ensuring a higher GDP growth in the coming years.

Participating in an interactive session with members of the Bengal National Chamber of Commerce and Industry (BNCCI) here, Dr Lahiri said since the reforms of the 1990s saw some significant changes, only a genuine second generation reform process could take the earlier benefits to a new high and make them more effective particularly in the areas of health and education.

He said after introducing sweeping changes in the policy of delicensing and decontrol of industries besides making external sector reforms, tariff reduction, shifting from protected to open economy and financial liberalisation, the monopoly of state-run institutions had been virtually done away with in all sectors.

Dr Lahiri said the national policy agenda for the future should be determined after analysing the benefits and losses of the previous ones.

He also opined that the second generation reforms were equally important to embark on an urgent programme to revitalise the government and public delivery systems at all levels of administration be that at the Centre, state or the district level.

Elaborating further the Chief Economic Advisor pointed out that introduction of macro-economic reforms to ensure better fiscal health was the topmost priority of the government.

"There is an urgent need to increase the tax-GDP ratio through improved tax administration," Dr Lahiri said and added that though the Indian tax system looked very complicated with having multiplicity of rates, all out efforts were being made at different levels to bring in complete transparency in the whole procedure within the next couple of years.

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