Most of the reforms of NDA government is work in progress requiring more relentless implementation: Crisil
MUMBAI: Most of the repairs and reforms of the NDA government remain work in progress, said ratings firm Crisil and the government will have to step up speed of reforms to move ahead speedily, it said.
“Relentless implementation would be crucial because most of the repairs and reforms remain work in progress”said Crisil in a report on the performance of three years of NDA government, released on Monday.
The government is trying to tackle some elephants in the room such as corruption, red-tapism and entrenched inefficiencies, adding that it needed to cut some slack, Crisil- a subsidiary of global Ratings firm Standard and Poor’s said.
It said that the implementation of the Good and services tax termed as one of the most significant indirect tax reform of the decade may not be optimal. But even with its imperfections, it could usher in significant benefits, especially through a quantum leap in transaction trails and logistical efficiencies.
On the positive sides, India’s macroeconomic fundamentals are looking much better, the report notes. India also continues to improve its global competitiveness rank, and states are getting more flexibility to spend the resources that central government transfers. There have also been concerted efforts to formalise the economy. But most importantly, NDA has significantly consolidated its political position.
Crisil has also listed the challenges that lie ahead. Non-performing assets in the banking system continue to rise and investment as a percentage of GDP is still low. Reversing this trend is critical for India’s sustained growth.
India also has to create millions of jobs – and skill its workforce – for its growth prospects to improve and maintain its demographic dividend. “That won’t be easy, especially given the challenges posed by technology.”Crisil said. It will also have to incentivising and facilitate micro and small entrepreneurship.
“Relentless implementation would be crucial because most of the repairs and reforms remain work in progress”said Crisil in a report on the performance of three years of NDA government, released on Monday.
The government is trying to tackle some elephants in the room such as corruption, red-tapism and entrenched inefficiencies, adding that it needed to cut some slack, Crisil- a subsidiary of global Ratings firm Standard and Poor’s said.
It said that the implementation of the Good and services tax termed as one of the most significant indirect tax reform of the decade may not be optimal. But even with its imperfections, it could usher in significant benefits, especially through a quantum leap in transaction trails and logistical efficiencies.
On the positive sides, India’s macroeconomic fundamentals are looking much better, the report notes. India also continues to improve its global competitiveness rank, and states are getting more flexibility to spend the resources that central government transfers. There have also been concerted efforts to formalise the economy. But most importantly, NDA has significantly consolidated its political position.
Crisil has also listed the challenges that lie ahead. Non-performing assets in the banking system continue to rise and investment as a percentage of GDP is still low. Reversing this trend is critical for India’s sustained growth.
India also has to create millions of jobs – and skill its workforce – for its growth prospects to improve and maintain its demographic dividend. “That won’t be easy, especially given the challenges posed by technology.”Crisil said. It will also have to incentivising and facilitate micro and small entrepreneurship.