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ECONOMIC REFORMS
Structural reform initiatives
1.
Interest rates on small saving reduced.
2.
Government equity disinvested in select public sector undertaking like VSNL, IBP, CMC, HTL, PPL,
BALCO and certain ITDC hotels.
3.
VRS introduced for Government, employees in the surplus pool.
4.
Full decontrol of sugar announced during 2002-03 (conditional on commencement of futures trading).
5.
Items covered under the Essential Commodities Act reduced from 29 to 17.
6.
Licensing requirements and restrictions on storage and movement of wheat, rice, sugar edible
oilseeds and edible oils removed.
7.
New pharmaceuticals policy announced reducing the span of price control rigours on several bulk
drugs and formulations.
8. Fourteen items dereserved form the list of items reserved for exclusive manufacture by the small-scale
sector.
9.
Bill for abolition of the Sick Industrial Companies (Special provision) Act introduced in parliament.
10.
Bill for setting up of a National companies Law Tribunal by amending companies Act introduced in
parliament.
11.
The Union Budget (2001-02) proposed amendments in the Industrial disputes Act and Contract
Labour Act for removing the existing structural rigidities in the labour market.
Fiscal Reforms
1.
Various economy measures introduced including downsizing some of the departments.
2.
Excise duty structure was rationalized to a single rate of 16 per cent CENVAT (Central Value Added
Tax) in 200-01. the Budget for 2001-02 replaced raplaced earlier three special rates of 8 percent, 16
per cent and 24 per cent by a single rate of 16 per cent.
3.
Peak level of customs duty reduced form 38.5 per cent to 35 per cent with abolition of surcharge on
customs duty. Customs duty reduced on specified textile machines, information technology,
telecommunications and entertainment industry.
4.
Goods imported by 100 per