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Labour  Enhance Renewable Manufacturing and Battery Storage  Take Proactive Measures to Expand Tax Base
Factor Market
Reforms  Implement the Four Labour Codes Across States Expand solar, wind, battery, and HVDC manufacturing Take steps to urge individuals whose Form 26AS/AIS
through incentives, public-private joint ventures, increased
reflects high volume of financial transactions, to file returns

Uniform rollout of consolidated labour laws across states is
critical. The Centre should issue time-bound transition PLI outlay and R&D investment. Focus on critical minerals and assess their correct incomes. An occupation-wise data
plans and support states, while also creating an advisory processing, recycling, and R&D partnerships to reduce analysis of the total working age population be used to find
import dependence.
Streamlining of land and labour markets, two historically body to help businesses adapt. potential taxpayers. MSMEs are backbone of India’s economy but face constraints in
constrained factors of production, is critical for expanding  Upgrade the Shram Suvidha Portal  Support the Salaried Class and Improve Compliance credit, compliance, and market access, which must be overcome
investment, generating employment, and improving productivity. Judicial to make them competitive players.
Upgrade the portal to serve as a centralized digital platform Establish a dedicated Central Processing Centre wing for
Land for all compliance reporting, inspections, and dispute Reforms salaried taxpayers and reduce compliance burdens by  Launch a National Formalization Strategy
tracking, with API integration across ministries. sparing them from withholding tax compliance like
 Strengthen the India Industrial Land Bank (IILB) purchase of immovable property and payment of rent. Strategy should focus on easing compliance and lowering
 Revise Overtime and Wage Norms costs of formalisation, boosting productivity, employment
Strengthen and expand the IILB into a central platform not  Rationalize GST Structure and wages. As part of it, exempt MSMEs from approval
only for viewing available land but also for end-to-end Align Indian regulations with International Labour A time-bound, transparent, and efficient judiciary is critical to requirements for the first three years of operation and set
allotment and approvals. Organisation (ILO) standards by allowing firms to average contract enforcement, dispute resolution, and investor confidence. Move towards a simplified three-rate system: 5 per cent for up MSME cells in all line ministries to provide coordinated
working hours across several weeks. This can improve both  Fill Vacancies with Real-Time Tracking essentials, 28 per cent for luxury and sin goods, and a single support and simplify compliance.
 Create Integrated State Land Authorities productivity and worker earnings. mid-tier rate at 12–18 per cent for others. Bring petroleum,
States must form single-window integrated land authorities Establish digital dashboards to monitor judicial vacancies electricity, real estate and potable alcohol under GST.  Reward Success and Support Innovation
responsible for all land-related functions, including zoning,  Digitize Labour Dispute Resolution and ensure timely coordination between the judiciary and Implement a PLI-like rewards scheme for eligible MSMEs. To
titling, and conversion, to reduce duplication and delays. The Samadhan Portal should be expanded into a full-service executive for appointments.  Centralize Audits and Assessments support innovation, introduce a Technology and Innovation
grievance redressal platform that allows workers and Replace state-wise decentralized audits with a single
 Digitize Change of Land Use and Registration employers to submit cases, track progress, and receive  Adopt a National Litigation Policy centralized audit and assessment, to reduce duplication and Voucher Scheme to help MSMEs collaborate with research
Online certification with digital signatures and QR codes legal support. Policy should reduce frivolous government litigation by inconsistencies in tax assessments. institutions.
must replace manual processes. Interdepartmental setting thresholds for appeal and promoting settlement  Launch Skill Vouchers for MSMEs
integration is essential for seamless verification and through Alternate Dispute Resolution (ADR) mechanisms.  Harmonize Tariffs and Digitize Customs
approvals. Energy  Create a Central Tribunal Authority Transition to a three-tier tariff system with raw materials Launch Skill Vouchers that allow MSMEs to send workers to
certified training providers for upskilling in emerging
 Rationalise stamp duty and registration charges Reforms and inputs taxed at 0.0-2.5 per cent, intermediates at technologies. MSMEs should also be included in the PM
This body would standardize governance across tribunals, 2.5-5.0 per cent, and final goods at 5.0-7.5 per cent. Internship Scheme.
Rationalise and harmonize rates across states in the range ensure performance monitoring, and reduce case backlogs Additionally, fully digitize customs processes and implement
of 3-5 per cent to reduce financial burden on businesses. by allocating resources more efficiently. artificial intelligence to identify valuation anomalies and  Modernize and Digitize Operations

 Move Towards Conclusive Land Titling India must build a resilient and clean energy ecosystem to  Expand Commercial Courts and ADR Councils prevent disputes in advance. Create cluster-based Industry 4.0 adoption scheme where
meet rising demand while advancing its green transition goals. registered tech providers help MSME clusters implement
States should replace the current presumptive titling States should set up more commercial courts, especially
system with conclusive land titles backed by government  Establish a GST-like Power Council in high-backlog districts. Simultaneously, expedite Incentivising tech and automation. Also set up an online P2P lending
guarantees to minimize disputes. the establishment of Arbitration and Mediation Councils platform to improve technology use and financial access.
A power council should harmonize open access charges, Manufacturing
 Introduce a dynamic land zoning plan rationalise tariffs, reduce cross-subsidisation, ensure discom of India.  Introduce Cluster Twinning Program for global
competitiveness
Dynamic and inclusive land zoning plans should be adopted, financial viability, and promote direct benefit transfers to  Digitize and Integrate Judicial Data
moving towards a “negative list” approach that allows targeted beneficiaries. To enhance global competitiveness, a Cluster Twinning
greater flexibility for land use based on evolving economic  Amend the Electricity Act for Competition Strengthen the National Judicial Data Grid by mandating Manufacturing must become the cornerstone of India’s Programme should connect Indian MSME clusters with
needs. comprehensive reporting, refining case classification, and development journey, enabling scale, quality, job creation international peers to enable technology transfer, joint
Reforms should allow multiple discoms in a region, expand enabling real-time ranking of state’s performance. Further, and exports. ventures, and capacity building.
open access, and mandate independent tariff setting to create a parallel platform for ADR outcomes to inform
enhance transparency and consumer choice. data-driven policy reforms.  Launch a ‘Revenue-Neutral Performance Linked Incentive’  Support Export Competitiveness

 Promote open access  Formulate a National Judicial AI Policy scheme under the National Manufacturing Mission Establish an MSME Export Facilitation Portal, subsidize
insurance for first-time exporters, and remove turnover
States must eliminate restrictive open access charges and Policy should accelerate digital transformation through Firms meeting defined thresholds in output and tax thresholds for public procurement eligibility.
contribution should receive tax credits and relaxed
inter-state sale levies. Central Electricity Regulatory AI-assisted case sorting, mandatory e-filing, and real-time compliance norms.
Commission should monitor and standardise open access performance analytics across courts.
charges, with penalties for non-compliance.  Provide Equity Support for Mid-Sized Manufacturers
Tax
 Modernize Grid Infrastructure Launch a Capital Incentive Scheme with a Rs 40,000 crore
Transmission upgrades should incorporate automation, AI, Policy fund offering up to 40 per cent equity support to firms
investing Rs 50–1,000 crore in new manufacturing
and smart load balancing. Standardized planning and capacities, catalysing over Rs 3 lakh crore in investments.
specifications for lower voltage levels by Central Electricity Provisions to incentivise technology adoption, R&D, job
Authority are essential for reliability and efficiency. creation and simplify regulations should be integrated into
India must continue to simplify its tax regime to improve
 Boost Green Hydrogen and Nuclear Energy certainty, widen the tax base, and reduce litigation. the scheme.

Create phased consumption mandates for green hydrogen  Expand Presumptive Taxation
in steel, fertilizer, and refining sectors, while giving it
infrastructure sector status. Amend laws to allow private Extend simplified presumptive tax schemes to a wider
participation in nuclear energy and align liability provisions range of resident and non-resident sectors. Increase
with international norms. turnover limits to align with MSME definitions.

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APRIL 2025
APRIL 2025