KEY HIGHLIGHTS

A look at the economic reforms announced so far

Portability of social security:

One Nation, One Ration Card; ensures benefits move with migrants, creating constant food security coverage

FDI in defence:

To be raised to 74% from 49% currently, will spur the military infrastructure segment, can make India a defence components output hub

Coal:

End of monopoly of Coal India Limited, allowing free private extraction on revenue-sharing basis. This will not be not a wholesale deregulation but revenue will be shared, i.e. a PPP mode. More coal output, less imports, more mining privatization

Composite Mining:

Mining firms can now do all of these simultaneously: explore, process and produce finished useable minerals. Will end fragmentation of mining industry, improve revenues, enlarge availability of raw materials

Private farm markets:

Private farm markets: Farmers can sell to any buyer, ends monopolies of agricultural produce market committees, will lessen ‘price spread’ in agri produce. The move will axe middlemen so farmers get more share in profits

Land:

The biggest hurdle in creating industrial base; 500,000 hectare of industrial-use land to be mapped onto an industrial land information system, so that available land for factories can be located, allotted faster

Airspace opening:

60% airspace limit available for civil aviation to be hiked, will spur aviation sector, badly hit by lockdown; reduce oil import bill, shorten flying routes

Essential Commodities Act:

FM proposed changes but did not provide details; can free up trade; To be sure, very difficult to implement because ECA is a key tool to fight food inflation. Has been promised in the past.