"The global financial meltdown has had its impact on India. While the government has taken several measures to start the growth process, we acknowledge that more needs to be done," Economic Affairs Secretary Arvind Mayaram said while addressing a CUTS International conference. (Agencies)
The economic growth fell to a decade low of 5 percent in 2012-13 fiscal. Finance Minister P Chidambaram had last week said the growth will be between 5-5.5 percent this fiscal.
The Indian economy had a growth rate of over 9 per cent, but the global financial crisis in 2008 pulled down the GDP expansion to 6.7 percent in 2008-09 fiscal. Mayaram said sectors like electricity, agriculture, education, healthcare and railways still suffer from serious visible competitive distortions.
He said as an aftermath of global financial crisis, the developed economies have brought in laws that are anti-competition, which promote protection for domestic players and are aimed at restriction on foreign goods and services.
"This is an alarming trend and would have serious long term consequences for global economy. Unfortunately institutions like IMF and World Bank have little Influence in arresting this trend," Mayaram said.
During April-September this fiscal, exports grew by 6.32 percent to USD 179.38 billion. Trade deficit in the first seven months of the fiscal stood at USD 90.68 billion.
Mayaram said to bring about greater competition in various sectors, efforts are required to make governance more transparent, accessible and accountable. "Rules must be clear about regulatory and competition impact. Assessment must be inherent features of rule making. A mechanism to review impact post implementation of rules is also required to be put in place to ensure rules remain dynamic and relevant," he said.
These, Mayaram said, had also been suggested by the Financial Sector Legislative Reforms Commission (FSLRC), the Damodaran Committee, the National Competition Policy and the working group on business regulatory framework.
"The government is considering implementation of non-legislative changes recommended by some of these committees, including adoption of National Competition Policy, to kick start the second generation reforms in India," he said.
"The global financial meltdown has had its impact on India. While the government has taken several measures to start the growth process, we acknowledge that more needs to be done," Economic Affairs Secretary Arvind Mayaram said while addressing a CUTS International conference.