Cumulative impact of new reforms could be substantial: Eco Survey

Last Updated: Friday, February 27, 2015, 16:36

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New Delhi: Cumulative impact of new reform measures, such as deregulation of diesel prices, coal ordinance and raising FDI limits, taken by the Narendra Modi-led government could be substantial, says the Economic Survey.

The survey, tabled in Parliament today, said a huge political mandate and a benign external environment have created a historic moment of opportunity to propel India onto a double-digit growth trajectory.

"... The new government has undertaken a number of new reform measures whose cumulative impact could be substantial," the Economic Survey for 2014-15 said.

The survey listed out several reforms, including replacing cooking gas subsidy by direct transfers across the nation and taxing energy products, besides eliminating quantitative restrictions on gold, taken by the new government.

"Taking advantage of declining oil prices, the excise tax on diesel and coal was increased four times. In addition to resulting in collections of about 70,000 crore (on an annualised basis), this action will have positive environmental consequences," the Survey said.

Talking about the Goods and Services Tax (GST) which the government is hopeful of passing in the ongoing budget session, it said, "Securing the political agreement on the goods and services tax (GST) that will allow legislative passage of the constitutional amendment bill."

The Land Acquisition Ordinance would help ease in doing business by making it less onerous, while ensuring that farmers get fair compensation.

On Jan Dhan Yojana it said, "Instituting a major programme for financial inclusion- the PM Jan Dhan Yojana under which over 12.5 crore new accounts have been opened till mid-February 2014."

On gas pricing it said, "Linking pricing, transparently and automatically, to international prices so as to provide incentives for greater gas supply and relieving the power sector bottlenecks."

It also listed instituting of Expenditure Management Commission (EMC) as an important measure taken by the government. EMC has already submitted its interim report to the government for rationalising expenditures.

Facilitating Presidential assent for labour reforms in Rajasthan, it said that it sets an example for consolidating and making transparent a number of labour laws.