New Delhi, 12 Jan (KNN) The PHDCCI and the Foundation of Economic Growth and Welfare (EGROW) organised a webinar this week, wherein former chief economic advisor and Chairman of EGROW Arvind Virmani spoke about the need for reduction in regulatory burden and decrease in the cost of doing business for encouraging MSMEs to set its foot in the corporate sector. 

He pointed out the policy reforms that took place in the last two years since the liberalisation period of 1990’s and how it acts as a facilitator.  

“Institutional reforms has been focus of the government, but there is a requirement of reducing the logistics costs in the country. The costs are significantly higher than in most economies. The export markets have recovered through the investment inflows but private consumption is yet to fully recover from the impact of the pandemic,” he said. 

Speaking about the recovery of investment inflows and the export markets, he said that the private consumption is yet to recover fully. 

He suggested that the consumption recovery can be accelerated through tax reforms, which in turn will accelerate job creation.  

In view of the GST council, he stated that it needs look into long term income maximisation rather than short term which it is doing so now.   

Pradeep Multani, President, PHDCCI said, “There needs to be a greater momentum on exports through tax free export income for MSMEs for 3 years, which will compensate for higher logistics cost.”