CII Unveils Reform Roadmap For India's Economic Transformation & Competitiveness

(MENAFN- KNN India) New Delhi, Aug 25 (KNN) The Confederation of Indian Industry (CII) has released a policy blueprint outlining a series of reforms aimed at accelerating India's economic growth and achieving the government's Viksit Bharat vision.

In its report titled 'Policies for a Competitive India', the industry body put forward over 250 actionable recommendations across 14 reform areas, ranging from factor markets and fiscal policy to trade, manufacturing and energy.

CII said the goal of becoming a USD 35.1 trillion economy by 2047 would require sustaining a real CAGR of 7.3 percent.

“While India's performance in global indices such as ease of doing business, innovation, logistics and competitiveness has improved, the country still underperforms relative to its size and capabilities,” the report noted.

Among its fiscal recommendations, CII called for the creation of a two-tier Fiscal Council at the Centre and state levels, gradual elimination of revenue deficits, and a credit rating system for state borrowings to link costs to fiscal performance.

It also proposed rationalisation of subsidies by shifting food and fertiliser support to direct benefit transfer (DBT) frameworks, replacing in-kind transfers under the Public Distribution System.

The report highlighted the need for factor market reforms such as digitised land titling, implementation of the four labour codes, a national minimum wage, and faster dispute resolution mechanisms.

On taxation, it suggested linking income tax exemptions and standard deductions to inflation and setting a roadmap to move to a single GST rate of 10 percent by 2030, while subsuming petroleum, electricity, real estate and alcohol under GST.

To strengthen manufacturing, CII recommended addressing the 'missing middle' of mid-sized firms through capital support, industrial corridors and improved freight connectivity.

On energy security, it urged elimination of cross-subsidisation, competitive tariffs, investment in transmission, private participation in nuclear energy and a roadmap for green hydrogen.

On trade, the body proposed exploring entry into major regional trade blocs such as CPTPP, leveraging experience from the India-UK FTA, and establishing a national taskforce on trade to address capability gaps.

It also suggested improving the balance and utilisation of existing FTAs with ASEAN, Japan and Korea.

CII added that governance reforms, including privatisation of non-strategic public sector enterprises, creation of a sovereign wealth fund, and modernised statistical systems, would be essential to meet India's long-term development goals.

(KNN Bureau)

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