The rebound in investments past pre-pandemic levels must be nurtured
Speedy implementation is, however, essential to ensure the expected gains accrue — of the 13 sectors for which PLIs have been announced, nine have been notified so far, and the others must be spelt out quickly lest global investors pick another destination. The handing over of Air India to the Tata group — the first outright sale of a public sector firm in almost two decades — will ring in some much-needed confidence in the Government’s much-reiterated stance that it has no business to be in business. With its efforts to repair some of the damage to the long-bleeding telecom sector and finally fix the festering folly of pursuing retrospective tax cases that it had termed as ‘tax terrorism’ while in the Opposition, the Government has been making the right noises. These decisions still have to be taken to their respective logical conclusions swiftly, for an enduring shift in perceptions, and outcomes on the ground. Moreover, as it seeks to seal economic partnership pacts or scale up ties with key markets like the EU, the U.S. and the U.K., India needs to also invest some of this energy into improving its image on key socio-economic parameters and the adherence to the ‘rule of law’ while refraining from fresh mistakes and heavy-handed regulations like the much-opposed draft norms for e-commerce. In a world where capital is increasingly influenced by environmental, social and governance standards, these factors merit more policy attention as well.
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