End govt intervention in agriculture: Indian economist

May 27, 2019 - India

The new Indian Administration should end government intervention in the agriculture sector, which should be its first priority, reform labour laws and lower cost of capital by reducing interest rate and corporate tax, economist Surjit Bhalla recently told the national executive committee meeting of the Federation of Indian Chambers of Commerce and Industry (FICCI).

While advocating elimination of the minimum support price and public distribution system, he recommended expanding the income support system to farmers, according to a FICCI press release.

He also suggested a major cut in corporate tax by about 500 basis points across the board, reducing the cost of capital in the country that is one of the highest in the world.

The priority of the new government should be to bring back the economy on the high growth trajectory, said FICCI president Sandip Somany. (DS)