DMPQ- Suggest appropriate investment model for India’s infrastructure sector.

Various investment models which have emerged in recent times especially  in post-reforms and also from experiences of emerging marker economies (EMEs). These  models are not alternates to each other but are only variants of investment models.

The policy support will require well-drafted ‘futuristic policies’ in different areas  especially in the areas of ‘pricing and tax matters’. These are the areas of grave concerns  affecting investment in the economy. Pricing should be such to induce investment and also  at the same time protect the interest of the ultimate consumers. Ar the same rime, it should  also be ensured that the pricing is competitive. Similarly, there should be ‘certainty’ of  taxes, unambiguous and provide comfort that they would not be applicable retrospectively,  unless warranted in exceptional circumstances and that too it should be on a case-to-case  basis. Policies should be like goal posts, which are firmly entrenched and visible to all.

procedures but looking at them positively. It is about giving speedy clearances through  single window approach both at the central as well as state government level. Partnership approach is not to ‘prevent but to allow’ or finding a way of getting  things performed but within the policy framework. It is not short circuiting of laid down.

Enabling environment lies in creating the infrastructure around which such investment  can be induced. ‘Reviewing’ various acts which influence such investments like mining  and minerals (development and regulations) act, land acquisition and various labour laws  all of which date back to 1950s. There is a requirement to comprehensively review them  in totality to make them more relevant to the changed present context.

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