Page 23 - Nuvama | IC Report 2023

INDIA: THE 5D ADVANTAGE
INDIA: THE 5D AD V ANT A GE

➦ Deregulation refers to unclogging the economy, simplifying the
regulatory framework and enabling markets to play a greater
role to spur efficiency and productivity; this is the mantra of
minimum government and maximum governance

➦ Over the last decade, India’s policymakers have undertaken
the most comprehensive reforms yet, spanning government,
businesses and citizens; this amounts to the second unshackling
of India since the 1990 reforms

➦ Government machinery is getting modernised and plugging
tax evasions and spending leakages; businesses are gaining
economies of scale amid rapid formalisation, and citizens are
getting empowered through digital infrastructure

➦ Front-ended costs and difficulties associated with reforms have
already been absorbed; now it is the time to reap the benefits

➦ The previous phase of upswing did not last long as the economy
ran into capacity constraints rather quickly even as inflation
picked up pace and deficits widened; this time, India is prepared
for a long runway of growth

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