Prime Minister Narendra Modi has met his senior cabinet colleagues and economists to identify priority areas for economic reforms to fast-track India’s growth, three senior government sources have told Moneycontrol.
The August 18 meeting comes close on the heels of Modi promising a GST overhaul and next generation reforms in his Independence Day address.
“The sense is clear — the government is serious, next-gen reforms are on the table. The mood was forward-looking, with a belief that these steps can secure stronger, more durable growth,” one of the sources, who was present in the meeting, told Moneycontrol.
In the meeting with his Economic Advisory Council, NITI Aayog officials and around eight cabinet ministers, including Finance Minister Nirmala Sitharaman, the Prime Minister reviewed areas where reform momentum is expected to accelerate.
In the 79th Independence Day address, Modi announced a “task force for next-generation reforms” to evaluate all laws, rules, and procedures related to economic activities.
The task force will draw up timelines to reduce compliance costs for start-ups, MSMEs and entrepreneurs; provide freedom from fear of arbitrary legal actions; and ensure laws are streamlined for ease of doing business.
"These reforms are aimed at creating a supportive ecosystem for innovation, entrepreneurship, and economic growth," PM had said.
Reform priorities
Sources said the priority areas could include goods and services tax (GST) regime overhaul, the long-pending labour code, agricultural marketing reforms and further liberalisation of investment rules.
Agricultural reforms, particularly around marketing and pricing, may be revisited in a calibrated form.
“The focus was on which reforms — economic, agri and institutional — should be implemented to deliver on the Prime Minister’s Red Fort announcements,” another source said.
A third source added, “The government appears to be preparing a roadmap that addresses structural bottlenecks and enhances India’s growth potential.”
Setting the stage
The renewed push for “next-gen reforms” comes as India aims to achieve developed nation status by 2047. Sources said the PMO is likely to produce a blueprint in the coming months that sets the tone for medium-term reforms.
India is projected to remain the fastest-growing major economy. With a fresh round of structural reforms, the government is aiming to convert this momentum into a more durable, reform-led growth trajectory.
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