7 challenges before Sitharaman, the new FM

Narendra Modi picked Nirmala Sitharaman as the person to steer India's next course of reforms. The former defence minister inherits a fractured economy and is probably staring at a slowdown which could be the worst in five years. The 59 years old former JNU student, Nirmala Sitharaman rose in the ranks of the Bharatiya Janata Party (BJP) and became the first full-time woman defence minister of India in Modi govt's first tenure. Before that she handled the Minister of State portfolio in the Ministry of Finance, Ministry of Corporate Affairs and Minister of State (Independent charge) of the Ministry of Commerce and Industry. She also served as Member of the Rajya Sabha, the upper house of Parliament, since 2016. Sitharaman had joined the BJP in 2006, when Nitin Gadkari was the party chief, and she went on to become the national spokesperson of the party. During PM Atal Bihari Vajpayee's tenure in 2003, she became a member of National Women for Commission and continued till 2005. Sitharaman will have her hands full, taking off from where Arun Jaitley left. Here's what she will be tackling in her tenure. 1] GET THE ECONOMY MOVING AGAIN 69590879 2] ADDRESS FINANCIAL SECTOR TROUBLESAnother round of capital infusion to put NPA issues behind.Special window for NBFCs to tide over liquidity crisis.3] CREATE JOBS8.1 million new jobs needed every year in India, according to the World Bank.4] GET PRIVATE INVESTMENTS FLOWING 69590890 5] ADDRESS WEAKNESS IN EXPORTSIndia is vulnerable to crude price shocks.This spills over as high CAD and currency weakness, high inflation. 69590905 6] RURAL STRESS DUE TO LOW GROWTH & SOFT PRICES 69590913 7] RAISE PUBLIC INVESTMENT WITHOUT COMPROMISING FISCAL PRUDENCEHigher welfare spending will be a drag on govt finances.Govt will need to find resources to solve this imbalance.This could impact capital budget of the govt. 69590967 SECTORAL AGENDA Reforms that the new government could address,TAXATION GST 2.0 with fewer rate slabs.Bring excluded items under GST, ease compliance.New direct taxes code.Cut corporate tax rate, remove exemptions.OIL, GAS & COAL Lift declining domestic oil output to reverse rising import dependence.Policy reforms to attract oil majors to upstream sector.Auction of coal blocks for private commercial mining to raise production.TELECOM Review of taxes/fees in sector to make it more viable..Push investment in broadband infrastructure.Revival of BSNL, MTNL.Infrastructure status for communication systems to enable low-cost financing.STARTUPSPermanent solution for angel tax issue.Differential voting rights to allow entrepreneurs to retain control.Relax financial thresholds to allow easier listing of startups.Equitable ecommerce policy, level playing field.ROADS, HIGHWAYS & SHIPPINGSpur private investment, strengthen PPP model.Asset sale to raise funds.Privatisation of ports and river-linking projects.Development of inland waterways.LABOURCollation of job data on realtime basis..Consolidation of 44 labour laws in four labour codes.Greater incentives to employers to create more formal jobs.SKILLSUnify education & skilling; set up regulator to monitor skilling programme.Incentivise employers to offer apprenticeships.Reskill existing workforce to meet industry demands.CORPORATE AFFAIRS Fine tune Insolvency and Bankruptcy Code.Revamp LLP framework.Ease compliance for companies.Give more teeth to SFIO.RURAL DEVELOPMENTHousing for all by 2022.Make rural livelihood mission more effective..Boost rural road network.RAILWAYSFree up fare setting.Private sector participation.More bullet train corridors.BANKING AND FINANCEPSU bank consolidation, capital infusion.Provide liquidity to NBFCs.Strengthen the bankruptcy law for faster resolution.More credit to agriculture/MSMEs.RENEWABLESGive renewable power priority, ensure viability.Infrastructure for evacuation of renewable energy and timely payment.Address equipment supply issues; dependence on China.MARKETSLowering transactional expenses, both STT and capital gains tax levied.Ease overseas investment norms, reduce compliance.AGRICULTUREDouble farmers’ incomes; remunerative prices.Development of irrigation facilities Agri-marketing infrastructure development.DBT for fertilizer; warehouse, silo creation.COMMERCE AND INDUSTRYRaise exports to reduce trade deficit.Ease access to credit for exporters.Boost Make in India.Improve ease of doing business in the country.Further easing of foreign investment rules.

from Economic Times http://bit.ly/2EM4Zzs