Availability of land is a pre requisite for industrial development. However, the new Land Acquisition Act makes it virtually impossible to acquire land and industry would like to see a comprehensive review of the same.
All natural resources are scarce and therefore access to these natural resources including land must be at equitable prices. The allocation must be rapid, enforceable and through transparent process.
Labor laws in the country remain archaic and inflexible. There is an urgent need to review the existing labor laws. The new laws should be such that these create a greater balance between capital and labor intensity.
India’s two trillion dollar economy no doubt has an enormous capital requirement for sustaining its high growth aspiration. However, at present our financial sector is not geared to meet this requirement. It is imperative that we seek to attract capital from all acceptable resources. We have to deepen and broaden our capital market to reduce dependence on FIIs. Also, the corporate debt market has to be strengthened to reduce dependence on banks for long term funding requirements. Consolidation amongst public sector banks may be considered for creating large sized banks.