Post-GST, The 10 Reforms India Needs In Trump Times

The fact that India’s economy grew at 7.8% in the previous quarter, combined with a demand-side stimulus of GST and personal income tax reforms, indicates that the Indian economy is in strong shape. However, with the global economy in turmoil and the tariffs challenge, there is great need to follow up GST reforms with more wide-ranging ones, to enhance our competitiveness. The following ten areas require immediate action, to alleviate the structural bottlenecks that currently make doing business in India more costly than in competitor economies.Implement labour laws | Parliament has already approved four labour codes that simplify compliance, enable scaling of enterprises, and encourage formalisation. Delay in implementing these is hurting competitiveness and deterring investments in manufacturing. To generate mass employment, especially in labour-intensive sectors, we need larger factories and more flexible labour markets.Operationalise the Urban Challenge Fund | This year’s excessive monsoon brought our cities to a crawl — overwhelming the roads, drainage systems, and metro rails. The ₹1L crore Urban Challenge Fund, announced in Feb 2025, aims to creatively redevelop urban spaces, address challenges in water and sanitation, and improve liveability. It can empower cities to compete globally and serve as engines of national growth.Push disinvestment & asset monetisation | The privatisation of two public sector banks and one insurance company remains incomplete. Strategic sales have been delayed for a considerable period. It is private enterprise that must lead India’s growth story, while public sector enterprises should focus on strategic areas. Completing these transactions within this year will send a powerful signal that the New Public Sector Enterprise Policy, aimed at minimising the state’s footprint, is real and irreversible.Budget also announced the National Monetisation Pipeline 2.0, targeting ₹10L cr worth of assets being monetised. This would lead to new revenue streams for govt and also unlock the value of these assets through private expertise.Operationalise the Clean Tech Manufacturing Mission | India today is a major importer of batteries, solar PV modules, motors, controllers, and wind turbines. The mission announced in Feb 2025 can ensure domestic capability in these critical sectors. Beyond energy security, this is about jobs, competitiveness, and positioning India as a global leader in the green economy.Create the DeepTech Fund of Funds | This is a critical component of the Research Development and Innovation (RDI) scheme and it is designed to support ventures in AI, semiconductors, biotechnology, and quantum technology. These are the strategic industries of tomorrow.Push power sector reforms | Industrial tariffs remain high because commercial and industrial users cross-subsidise households and agriculture. This keeps Indian power expensive. Rationalising tariffs, reducing losses in distribution companies, and ensuring a reliable supply are essential to make India a global manufacturing hub.Lower the logistics costs | These remain stubbornly high at 13-14% of Indian GDP, compared to 8-9 % in peer economies. The PM Gati Shakti initiative is a step forward, but it needs faster execution: reducing port dwell times, enabling multimodal integration, and deploying digital platforms for seamless tracking.Expand access to credit | India’s small businesses continue to pay among the highest real lending rates globally. The statutory liquidity ratio (SLR) must be gradually phased down. This will expand the pool of loanable funds in the economy and allow banks to direct more resources toward productive lending — which will enable MSMEs to access affordable finance and scale up.Drive tourism as a job creator | Despite our extraordinary diversity of heritage, culture, spirituality, and natural beauty, our share in global tourism receipts remains modest. We have not launched an international marketing campaign in over a decade. The time has come to launch Incredible India 2.0 as a bold, modern campaign to transform tourism into a key engine of job creation, especially for women and youth, while amplifying India’s soft power on the global stage.Champion free enterprise | This is not just an economic choice but a social imperative. We must back our entrepreneurs. It will mean more jobs, innovation, and investments.India’s growth has been characterised by steady progress and bold reforms at key junctures. Now is a turning point, driven by tariffs and geopolitical headwinds, urging us to act quickly and clearly, unlocking new growth engines. With the scale, youth, and entrepreneurial spirit to turn turbulence into opportunity, we must stay the course, deepen reforms, and act decisively. Doing so will enable India to achieve prosperity at home and emerge as a stable, growing force in uncertain times.The writer is the former CEO of NITI Aayog