8 Economic Reforms for different Sectors of the Economy

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The Finance Minister Smt. Nirmala Sitharaman has presented the 4th phase of economic reforms for 8 sectors of the economy in today’s press conference.

Our Prime Minister Sh Narendra Modi had recently brought the Atmanirbhar Bharat: The Special economic relief package of ₹ 20 lakh crores. The main motive behind this package is to bring much-needed relief and credit support for various sectors of the economy which are worst hit by COVID-19 lockdown. In the 4th phase, the Finance Minister has presented the economic reforms for 8 key sectors of the economy.

Let us quickly go through those key economic reforms for 8 sectors of the economy.


#1. Coal Sector:

Here are key reforms to be brought in the coal sector:-

  • The government monopoly in coal mining is going to be removed. Private companies will be allowed to participate in coal mining activities.
  • ₹50,000 crores to be allocated for the evacuation infrastructure.

#2. Defence Sector:

Here are key reforms to be brought in the defence sector:-

  • Foreign Direct Investment (FDI) cap in the defence sector to be raised from 49% to 74%.
  • Corporatization of the Ordinance factory to be done. Here, it’s important to note that Corporatization is not privatization, which means the transfer of a business to private ownership. Here, only the Ordinance Factory Board shall be incorporated as a Govt PSU.
  • Moreover, the government shall soon notify a list of weapons and platforms banned for import, in order to encourage Make in India drive and to make India self-reliant in Procurement of defence supplies.

#3. Civil Aviation:

Here are key reforms to be brought in the defence sector:-

  • Several restrictions on the utilization of Indian airspace shall be removed. This will bring rationalization & optimized use of airports and hence save time, money, and fuel.
  • 6 more airports shall be let out for auctioning under the PPP model. 6 are already out for auction. It’s deemed that these 12 airports shall bring in investments up to ₹13,000 crores.
  • India shall be made the Maintenance, Repair, Overhauling (MRO) hub for the aircraft.

#4. Power sector:

The privatization of power discoms in the union territories to be done.

#5. Social-infrastructure:

₹8,100 crores shall be allocated for the enhancement of social infrastructure in India.

#6. Mineral sector:

500 mining blocks will now be let out for transparent & open auctioning.

#7. Space sector:

Here are key reforms to be brought in this sector:-

  • The private sector to be made a participant in India’s space journey
  • Now, some future projects for planetary & space research to be given to the private sector.

#8. Atomic Energy:

Here are key steps to be taken in this sector:-

  • Atomic research reactor to be built with the PPP model for the production of medical isotopes, which are used to treat diseases like cancer.
  • Efforts to be made for using the Irradiation technology for food preservation of perishables like onions. Very importantly, food items treated with irradiation must bear the ‘Radura’ mark.

Know more about Radura Mark.

These are the key reforms brought for 8 sectors of the economy.

Also, watch the complete press conference:-

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