Page 55 - ES 2020-21_Volume-1-2 [28-01-21]

38 Economic Survey 2020-21 Volume 1

where to sell his/her produce, the Indian farmer did not. The local monopolists created by this
legal infrastructure enabled the intermediaries to prosper at the cost of the farmer, especially
the poor ones without the wherewithal to store their produce. The agricultural reforms enable
the farmer to sell where he gets the best deal and thereby enable competition that is sine qua
non to create welfare for the small farmer. The reforms in agriculture markets will enable
creation of ‘One India one market’ for agri-products, create innumerable opportunities for
farmers to move up the value chain in food processing - from farm to fork, create jobs and
increase incomes.

1.56 The proposed structural reforms in the mining sector aim to increase participation
of the private sector in mineral exploration, redefine the norms of exploration for auction
of mineral blocks to ensure a seamless exploration-cum-mining-cum-production regime.
They will also redefine the standard of exploration required for auctioning of blocks for
prospecting license-cum mining lease and open acreage licensing policy for allocation of
mining rights which will give a major boost to the production of minerals in the country.
These reforms aim to reduce dependence on imported coal, to create a strong, self-reliant
domestic energy sector, attract private investments, generate jobs and stimulate the economic
growth in the medium-term.
1.57 At the same time, production-linked incentive (PLI) schemes have been implemented
in ten key specific sectors to make Indian manufacturers globally competitive, attract
investment in the areas of core competency and cutting-edge technology; ensure efficiencies;
create economies of scale; enhance exports and make India an integral part of the global
supply chain. These Schemes provide incentive to enhance production and create wealth
and jobs. The proposed privatization of Public Sector Enterprises in non-strategic sectors
recognizes the need for efficient allocation and use of resources. All these reforms are
intended to bolster the productive capacity of the economy, and create wealth and jobs
especially at the bottom of the pyramid. This would, in turn, lead to inclusive growth and
sustained demand generation in the economy. The policy package ensures that the regulatory
environment is conducive to ease of doing business with simpler, transparent and time-
bound procedures for doing business.
1.58 Most of these reforms have long been recommended for enhancing the efficiency and
achieving economies of scale in various sectors. An illustrative timeline of the consultations for
agricultural reforms may be seen at Table 4. Specifically, economic surveys of previous years
have made the case for these reforms by highlighting carefully the economic benefits from the
same. The time of the ‘crisis’ was utilized to take some ‘bold’ decisions to actually implement
these reforms to propel the growth of the Indian economy.

Table 4: Illustrative Timeline of Consultations/Recommendations for Agricultural Reforms
S. No. Committee/Report Year Chairperson/Author

Expert Committee on Strengthening and Developing of
1 2001 Shankerlal Guru
Agricultural Marketing
Montek Singh
2 Report on the Task Force on Employment Opportunities 2001
Ahluwalia