New Delhi, Jun 15 (KNN) A leading think tank, the Global Trade Research Initiative (GTRI), has proposed several key economic reforms for India's new government including simplifying the customs duty structure, which has not been reviewed in 20 years, leading to complex rates.

The GTRI suggests this simplification could reduce the average import tariff from 18.1 per cent to below 10 per cent.

Additionally, the think tank recommends increasing the Goods and Services Tax (GST) exemption limit from 40 lakh to 1.5 crore rupees, a move that could benefit small businesses, promote job creation, and improve tax compliance.

Another area of focus is the Production Linked Incentive (PLI) scheme. The report advises revising the scheme's criteria to help more firms benefit, as currently less than 5 per cent of available funds have been utilised.

The GTRI also highlights the need to reduce dependence on Chinese imports, especially in sectors like industrial products, electric vehicles, and pharmaceutical ingredients, suggesting a strategic approach to cut this reliance.

Evaluating the performance of existing Free Trade Agreements (FTAs) is another key recommendation. This assessment can provide valuable insights for ongoing negotiations with 49 countries.

Furthermore, the think tank emphasises promoting exports by simplifying rules related to e-commerce, which could enable more of India's 20 lakh quality producers to start exporting.

The report underscores the importance of energy security and ease of doing business reforms. These comprehensive recommendations come at a crucial time as the new government looks to drive economic growth and address key challenges across various sectors.

(KNN Bureau)