1. India and the Knowledge Economy: Leveraging Strengths and Opportunities Prioritising key Issues in the Economic and Institutional Regime November 9 2004New Delhi

2. Economic and Institutional Regime List Key issues Categorise : Priority Missing?

3. Economic and Institutional Regime : List Positives Local Competition Neutral Press Freedom Gross Capital Formation Regulation of Financial Institutions Soundness of Banks IPR Negatives Budget does not balance Trade as % of GDP Tariff and Non Tariff Barriers

4. Economic and Institutional Regime: List Fiscal Position Productivity of Public Sector Lackluster Performance of Civil Service FDI limits Low Global integration Slow down in Industry and Services Untapped role of Diaspora Conducive Investment Climate Cost of Doing Business in India Slow legal system

5. Economic and Institutional Regime : List Reduce and Simplify Tariff Eliminate Preferential policy for SSI VAT Phase out FDI restrictions Improve IPR Reduce/Remove restrictions on Labour Credit to SME’s / Venture Capital Bankruptcy laws Land reform Customs Power sector reforms Transport Sector reforms Use of ICT to improve Government performance

6. Economic and Institutional Regime : Top 7 Fiscal System : Deficits Infrastructure Conducive Investment Climate Speed Legal Process Unified Taxation policy – VAT / GST Use of ICT Reduce and Simplify Tariff

7. Economic and Institutional Regime :Infrastructure Integrated approach : Energy vs Power Plan for 25 years ahead Regulatory Framework End to end solution : Transportation :Raw Material to Factory and Factory to Market Tariff Reform to enable sustainability

8. Economic and Institutional Regime :Conducive Investment Climate Simplify Business Processes Integrate Market Uniform processes : Use ICT Uniform Laws Uniform regulations and standards Review Acts Start with Sectors of Common interest to State : Food Processing Bio Technology Transport

9. Economic and Institutional Regime : Speed Legal Process Review CPC, CrPC Introduce Standard time Bound Procedures –Filing –Evidence –Arguments –Judgment –Appeal –Penalties Use ICT in Courts

10. Economic and Institutional Regime : Unified Taxation policy – VAT / GST VAT a good first step but GST? Review local taxes if not eliminate rationalise and equate : Uniform one market ?

11. Economic and Institutional Regime : Use of ICT Leverage Work done Standardise use formats that have worked Enforce Standards –Election Commission Move to Outsourcing ?

12. Economic and Institutional Regime: Difficult Issues Work with NGOs, Associations Create Documents Provide Forums Develop an agreed agenda for India Influence Change