Category

Action

Product
market

Eliminate reservation of all products for small-scale industry; start with 68

sectors accounting for 80 percent of output of reserved sectors

Equalize sales tax and excise duties for all categories of players in each
sector and strengthen enforcement

Establish effective regulatory framework and strong regulatory bodies

Remove all licensing and quasi-licensing restrictions that limit number of

players in affected industries

Reduce import duties on all goods to levels of South East Asian Nations (10
percent) over 5 years
Remove ban on foreign direct investment in retail sector and allow
unrestricted foreign direct investment in all sectors

Key sectors
directly affected
836
manufactured
goods
Hotels and
restaurants
Manufacturing
(e.g. steel,
textiles,
apparel)
Retail trade
Power
Telecom
Water supply
Banking
Dairy
processing
Petroleum
marketing
Provident fund
management
Sugar
Manufacturing
Insurance
Retail trade
1

Category

Action

Land
market

Government
ownership

Others

9
10

Key sectors
directly affected
Telecom
Resolve unclear real-estate titles by setting up fast-track courts to settle
disputes, computerizing land records, freeing all property from constraints on
sale, and removing limits on property ownership
Raise property taxes and user charges for municipal services and cut stamp
duties (tax levied on property transactions to promote development of
residential and commercial land and to increase liquidity of land market
Reform tenancy laws to allow rents to move to market levels
Privatize electricity sector and all central and state government-owned
companies; in electricity sector, start by privatizing distribution; in all other
sectors, first privatize largest companies

11

Reform labor laws by repealing section 5-B of the Industrial Disputes Act;
introducing standard retrenchment-compensation norms; allowing full
flexibility in use of contract labor

12

Transfer management of existing transport infrastructure to private players,

and contract out construction and management of new infrastructure to
private sector
Strengthen extension services to help farmers improve yields

13

Construction
Hotels and
restaurants
Retail trade
Airlines
Banking and
insurance

Manufacturing
and mining
Power
Telecom
Labor-intensive
manufacturing
and service
sectors
Airports
Ports
Roads
Agriculture