Enhancing India's Competitiveness: A Blueprint for Reforms - Chandrajit Banerjee's Proposal
In a significant move towards shaping India's future, the Confederation of Indian Industry (CII) has unveiled a comprehensive report titled "Policies for a Competitive India". Authored by the CII and released in August 2025, the report was developed through consultations with industry leaders, economists, and policy experts.
The report is aligned with the government's vision of a "Viksit Bharat", or developed India, by 2047. It emphasizes the need for the pace and depth of reforms to match the scale of India's ambition of becoming a developed nation in one generation.
The report presents a medium-term roadmap towards GST 2.0, including rate rationalisation, the inclusion of petroleum and electricity under GST, and streamlined customs procedures. A three-tier Most Favoured Nation (MFN) tariff structure and a strategic approach to Free Trade Agreements (FTAs) are recommended for trade policies.
Macroeconomic stability is a key focus area, with the creation of two-tier fiscal councils, periodic fiscal risk assessments, stronger inflation management frameworks, and a modernized statistical system proposed. Simplifying regulation involves a mandatory regulatory impact assessment for new rules, time-bound approvals, expansion of self-certification, and dedicated insolvency reforms.
Public sector reform includes accelerated privatization of non-strategic Public Sector Undertakings (PSUs), the creation of a sovereign wealth fund, and governance reforms such as succession planning frameworks. Factor market reforms propose the expansion of the India Industrial Land Bank into a full allotment and approval portal, the standardisation of stamp duties, and the guarantee of land titles. Uniform adoption of new labour codes across states, a national minimum wage linked to living costs, and digital dispute resolution systems are proposed for labour reform.
Sustainability, employment, and urban reforms aim to integrate industry into India's climate adaptation plans, expand green procurement, and provide businesses with open access to digitised climate data. A National Employment Policy, a framework for the gig economy, and targeted job programmes in the bottom 100 districts are proposed for employment. The creation of a National Urban Planning Authority, digitised property taxes, and investments in affordable housing and transport are proposed for urban reforms.
Manufacturing competitiveness is targeted through capital support for mid-sized projects, the development of new industrial cities along the planned industrial corridors, and the acceleration of freight corridor development. Phased compliance exemptions, a strengthened Udyam portal, vouchers for upskilling of workers and technology adoption, and a second-tier patent system are recommended for Micro, Small, and Medium Enterprises (MSMEs).
Energy reforms propose a GST-like Power Council to harmonise tariffs, the elimination of cross-subsidies that burden industry, the establishment of competitive choice in electricity distribution, and a roadmap for green hydrogen adoption.
The report also emphasises the importance of judicial efficiency, with the establishment of a Central Tribunal Authority, the expansion of commercial courts, the promotion of arbitration and mediation councils, and a strengthened judicial data grid proposed to accelerate case resolution.
The CII report contains more than 250 actionable recommendations, with the goal to replace friction with trust, enabling entrepreneurs to start, run, and exit businesses seamlessly. The report is a living blueprint, intended to evolve with fresh ideas and insights in step with global and domestic realities. The report emphasises the need for a consultative policymaking framework to begin the reform process.
In summary, the CII's "Policies for a Competitive India" report presents a comprehensive roadmap for national development, focusing on tax and trade policies, public sector reform, factor market reforms, sustainability, employment, urban reforms, manufacturing competitiveness, energy reforms, and judicial efficiency. The report is a significant step towards realising India's vision of becoming a developed nation in one generation.
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