Job creation, women’s empowerment top priorities for secretaries panel

The government has set up 12 committees of senior officials to devise ways to spark long-term economic growth amid global uncertainties. The panels are working to ease the compliance burden on companies, encourage private investment in infrastructure, support small businesses and boost job creation, a person familiar with the government discussions said.

Based on the suggestions, the government will make plans to help India match the parameters of developed countries in these areas and create an enabling infrastructure for growth over the next 25 years, the person said, seeking anonymity. The committees have representatives from states and Union territories.

The move comes at a time when India’s exports and job creation are being hit by a slump in global demand that has led to rising interest rates. The government is increasing spending on infrastructure projects to stimulate private investment and boost economic growth.

The 12 working groups are based on six sub-themes of two broad pillars — growth and job creation; and inclusive human development. The six themes are: reducing regulations, infrastructure and investment, boosting small businesses, empowering women, health and nutrition and skills development.

“The desks of the secretaries are defining the specific milestones to be achieved in each of these areas in the next 25 years, so that they are on par with the parameters of developed countries. Based on these milestones, the necessary specific schemes and programs will be made. That work is progressing,” said a second person familiar with the government’s discussions. The goals will soon become action plans and will take into account the requirements of economic growth and human capital development, people. he said.

While Punjab leads the pack in minimizing regulatory compliance, it is Tamil Nadu that has to assess the cost of regulation. The task force on improving private investment is led by Gujarat, with a focus on manufacturing, housing and real estate, and services.

Madhya Pradesh heads the urban infrastructure, urban transport, roads and logistics, power and industrial infrastructure groups.

Micro, small and medium enterprises (SMEs), which were most affected by the effects of demonetisation and the pandemic, are prominent in the deliberations. Haryana is leading a team to formalize, assess and bridge the SME credit gap across sectors, synergizing the efforts of state and Union governments towards inclusion.

The main recommendations of these groups will be discussed at the second Conference of National General Secretaries to be held in 2023.

Various forecasts have put current tax economic growth at close to 7%. Emails sent to finance ministry spokespersons and NITI Aayog seeking comment on the story on Tuesday went unanswered.

India needs to create an enabling infrastructure for growth, said Madan Sabnavis, chief economist at Bank of Baroda.

“The focus on reducing regulatory compliance has always been on the government’s agenda, but it needs support from the states. This will help improve private investment flows as the industry looks at different states and then calls where to invest. If we take this seriously, there should be a spirit of competition where states work to attract more investment, which will help create jobs,” said Sabnavis. Therefore, regulatory barriers to job creation increase investment where needed. to ease it, he added. .

“This will help a lot over time. Therefore, as we expect the demand cycle to be more favorable, which is the driver of investment, these clearing operations will encourage investment in more open states,” he added.

It has been allocated by the Union government 1 trillion as an interest-free 50-year capex loan for states in FY23 to spend on new or ongoing projects.

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