A US-based think tank has released a 30-point reform agenda for India, recommending the privatization of all Central Public Sector Enterprises over the next decade. The report also suggests expanding the GST ambit to include petroleum, electricity, real estate, and alcohol. These policy proposals aim to accelerate economic growth and improve India's global business competitiveness.
Detailed Coverage
The Centre for Strategic and International Studies (CSIS), a prominent US-based research organization, has published a detailed reform agenda intended to support India's long-term economic expansion. The most notable proposal involves a ten-year timeline to transition all Central Public Sector Enterprises (CPSEs) into private ownership. This recommendation focuses on reducing the government's direct role in commercial business activities to foster a more competitive market environment.
Expanding the GST Framework
A central pillar of the CSIS report is the call to bring currently excluded items—specifically petroleum products, electricity, real estate, and alcohol—under the Goods and Services Tax (GST) system. These sectors are currently subject to a complex web of state and central levies. Unifying these under the GST structure could simplify tax compliance for businesses, reduce the cascading effect of hidden taxes, and provide the government with a more transparent and predictable revenue stream.
Targeted Structural Reforms
The report also identifies specific areas where procedural changes could lower the cost of doing business. These include simplifying the land acquisition process, which remains a significant hurdle for large-scale infrastructure projects, and reducing government equity in public sector banks to 33%. Additionally, the think tank advocates for a unified online dispute resolution system, which it argues would lower the time and financial burden on companies currently stuck in protracted legal battles.
Progress and Policy Outlook
Richard Rossow, an economist at CSIS, observed that the Indian government has already acted on parts of this agenda, including passing the Jan Vishwas Bill 2.0 and opening nuclear energy to private capital. These steps indicate an existing momentum toward policy liberalization. While the report offers a roadmap for future action, it also highlights that the political and economic complexity of privatizing state-run companies and altering tax structures remains high. The proposals are intended to serve as a guide for policymakers to enhance India's economic framework in the coming years. Investors and market participants will monitor whether the government adopts any of these structural suggestions in future policy budgets or legislative sessions.