100-days agenda for new govt: Accelerate NPA clean-up, cut corporate tax to 25%, says Arvind Panagariya

In the first 100-days, the Narendra Modi-led government should focus on acceleration of non-performing loans (NPAs) clean-up, eminent economist Arvind Panagariya said on Monday.

Panagariya, who had served as the first Vice Chairman of the NITI Aayog from January 2015 to August 2017, in an interview with CNBC-Tv18, said that the government can start by cutting corporate tax to 25 percent and removing exemptions. He said the government should focus on strategic disinvestment and can take up Air India privatisation issue again.

Panagariya said the government needs to roll back customs duties hiked by it. Commenting on the US-China trade war, Panagariya said India can take advantage of the spat only if the country’s markets are open.

#CNBCTV18Exclusive | @APanagariya: 'In my 3 years at NITI Aayog, I felt Commerce ministry bureaucrats were too conservative' pic.twitter.com/gy2a6vUDuo

— CNBC-TV18 (@CNBCTV18Live) May 27, 2019

On Monday, an official said the commerce ministry was considering a major export promotion scheme to ensure expeditious refund of central and state taxes and levies to boost shipments in the wake of global challenges at trade front.

The proposal is part of a 100-day action plan prepared by the ministry for the new government which will take office on 30 May. The ministry has also planned to roll out national logistics policy, multi-modal logistic policy, integrated national logistics action plan, and logistics planning and performance management tool.

“Multi-Modal Transportation of Goods bill will be introduced in Parliament. The new bill will replace the existing MMTG Act, 1993. The new Bill introduces new concepts like regulation of self-regulatory agencies etc,” an official was quoted as saying by PTI.

Last month, Panagariya had said that India must focus on the growth of labour-intensive sectors to create decent jobs for the masses as well as give “serious thought” to privatising the public sector banks (PSBs).

“My personal view is that India must complete its reform process in the coming five years,” Panagariya, Director at the Raj Center on Indian Economic Policies at Columbia University, told PTI in New York in April.

With PTI inputs