The 12-member high-level advisory group constituted by the union commerce ministry on Friday submitted its report to government and has recommended the centre to cut down corporate tax rate and set a target to double the exports by 2025.
The panel set up by the government last year has asked the centre to create 25-year sovereign bonds, where people declaring undisclosed income bound to invest 50 percent.
Further, the advisory group, which was headed by Prime Minister's Economic Advisory Council (PMEAC) part-time member Surjit Bhalla, requested the centre to drop tit for tat approach on tariff wars with other countries as it may not be the best option for India.
Looking at the US-China trade war, the panel has recommended that the government must reduce tariffs, which will be beneficial for the country in the current circumstances.
Following are the suggestions made by the panel that includes creating pan India Tourism board and medical tourism campaign; modify labour laws to remove the limitation on firm size; review existing free trade agreements (FTAs) especially with competitors like Bangladesh and establish industrial parks to cater to needs of electronics manufacturing.
The advisory group also recommended enhancing the capital base of Exim Bank by another Rs 20,000 crore by 2022 and create an empowered investment promotion agency.
In April 2015, the government released the foreign trade policy for 2015-20, which has provided a framework for increasing exports of goods and services. The five-year policy provides guidelines for enhancing exports with the overall objective of pushing economic growth and generating employment.
In 2020, the commerce ministry will release the new policy for the next five years. Under the policy, the government announces steps for exporters. Currently, the government has two schemes --merchandise and services export from India scheme.