Legacy issues that have held back private investments need to be worked out, says Chief Economic Advisor Arvind Subramaniam who feels that reforms in taxation, improving ease of doing business and stepping up of public investments should be the focus to perk up the economy.
However, he ruled out any fiscal stimulus for boosting growth.
“I think two sectors holding back the economy are private investments and exports. We have discussed this several times. We have discussed this in the Economic Survey as well that corporate sector is still challenged. It has legacy issues and those that are holding back private investment need to be worked out,” he said.
Ease of doing business, taxation, public investment and GST law are on all part of the agenda of reforms before the government.
“Of course, the question is open when and who will take the lead. All these are standard agenda items. It is not kind of secret or complicated,” he said when asked about what are the areas on government’s mind when it talks about stepping up reforms.
To a question about the complaints from the industry despite a number of measures that have been taken by the government to resurrect confidence, Subramanium said the point is the extent of problem is quiet deep.
“I think legacy problem and specially when economy is slowing down there is still a lot of debt.”