September 9, 2025

India took a giant step with the Goods and Services Tax (GST) reform, but now experts say it’s time for the next big moves! After GST’s success, top policy advisers and economists want the government to focus on process reforms that can make doing business easier and unleash high growth for years to come. They shared their exciting wish list with ET, including changes to labour laws, land use, trade policies, disinvestment, privatisation, and even judicial reforms. A senior government official, speaking confidentially, said these reforms will bring “more efficiency, higher growth and employment,” helping India reach its 2047 goals. Another official added, “While the list of reforms needed in the country is long, it is time we identify the low-hanging fruits as we aim towards ease of living for our people and ease of doing business.” In fact, the Centre recently formed two high-powered groups under Niti Aayog member Rajiv Gauba to prioritize these reforms with input from stakeholders. PM Narendra Modi also called for “next-generation reforms” in his latest Independence Day speech. Economists pointed out that removing hurdles like complex labour laws and high business costs is key. Laveesh Bhandari from the Centre for Social and Economic Progress did not hold back: “The Industrial Disputes Act should be eliminated, not just diluted.” He says policies should protect workers through insurance rather than job protection, giving businesses the flexibility to hire freely. Bhandari also flagged the sky-high cost of land in India as a major problem. His spicy solution? Build big private industrial parks near demand hubs to offer affordable land and infrastructure at scale. Another hot topic is India’s slow courts — it takes on average 1,445 days to enforce a contract! That’s a whopping four years of waiting before justice. Tax troubles add to the business headache. “Tax authorities often reopen cases from 5-10 years ago,” locking up investment money, Bhandari said. Simplifying taxes and reducing litigation would free funds for growth. HSBC’s India chief economist Pranjul Bhandari praised the new labour codes but warned they’re not yet notified — a crucial step. She emphasized that deregulation is needed as “setting up a business in India faces many supply and regulatory bottlenecks.” Experts agree reforms should be flexible, reaching state and local levels. Expanding global capabilities centers outside big cities with special economic zones could boost IT exports too. Disinvestment is seen as a smart way to raise government money, mention experts. Former chief statistician Pranab Sen said the government must focus on micro, small and medium enterprises (MSMEs), which have unique local challenges. He added that skill development for MSMEs should match the support big companies get. On trade, HSBC’s Bhandari urged cutting import duties on raw materials and welcoming more foreign direct investment, even from China. India is already working on 8-10 new trade deals and reviewing current ones like Asean-India Trade in Goods Agreement. So, the message is clear: after the GST fireworks, India’s next big show must be in sweeping reforms that untangle sticky laws, chop red tape, and create a smooth road for businesses to flourish and the economy to boom!

Read More at Economictimes →

Tags: Gst reform, Ease of doing business, Labour reforms, Trade reforms, Disinvestment, Judicial delays,