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This File was last Updated/Modified: April 04 2014 17:38:20.

Directions for Reforms

  • The second generation of reforms will have to embrace all sectors of the economy and cover the central and state governments.
  • There is a need to bring down the fiscal deficit and the rate of inflation which will help to reduce the real interest rates.
  • Fiscal deficit should be brought down through resource mobilization efforts and austerity.
  • Private initiative in infrastructure will not be forthcoming until the services are appropriately priced to cover the full cost of operations.
  • Regulatory mechanisms need to be introduced which will oversee pricing of services and other issues.
  • The industrial sector will have to adjust and respond to the challenges and opportunities posed by the WTO regime.
  • Competition policy and reforms in labour policy will have to be introduced.
  • The coverage of PDS should be restricted to rice and wheat only.
  • The emphasis under PDS should shift from provisions of food subsidy to stabilization of food prices and assured availability with effective targeting of the subsidy.
  • The education system should focus on universal primary education especially the girl child, full literacy and improvements in quality of higher and technical education.
  • Access of the poor to public health needs to be improved and the rich should pay the full cost of health services.
  • Environmental Accounting should be an integral part of the plan process.
  • Initiatives by local bodies, NGOs and women need to be encouraged.
  • Administrative and legal reforms should be an integral part of the reform agenda