In a blueprint on imperatives to force the pace of second generation reforms, submitted recently to the Government, the chamber has stated that the legislative reforms should be succeeded with a systemic reassessment and restructuring of public expenditure by the central and state governments, with the specific objective of enhancing the efficiency of such expenditure.

The blueprint has further stated that the proposed Expenditure Commission must be given statutory powers to recast public, especially revenue expenditure. This, according to the chamber, will bring the focus on revenue expenditure.

Initiation of some of the strategic components of building an infrastructure for the next century has to be the third step in the second generation of reforms. "The infrastructure sector must remain the focus of policy attention for the secondgeneration reforms," chamber president K P Singh has stated. Initiatives such as highway construction, port modernisation and tourism development can trigger growth in various sectors and regions.

Other efforts required in this sector include financial closure of several projects that are in the pipeline as well as policy reforms where projects have been held up due to that factor.

The chamber has also called for special thrust on agriculture and education. "The Indian economy cannot deliver 8 per cent growth over the next decade if rural incomes cannot be increased. Agrarian reform is the key to high growth in India," Singh added.

The blueprint has warned that the country cannot become a "knowledge-based economy" unless educational system is modernised at all levels. The education system must also better reward merit and excellence and punish mediocrity if it has to become an engine of economic growth and social empowerment, it added.

The chamber added that priority will have to be accorded topublic enterprise reforms, privatisation of non-strategic enterprises, particularly in tourism and consumer goods. Large public enterprises such as Air India, Indian Airlines, Bhel, Hindustan Shipyard, Mazagaon Docks and other establishment should be encouraged to enter into strategic collaborations with global corporations to enhance their technical and service capabilities.

Exports will have to be stepped up with necessary policy changes to ensure stability and sustainability of the balance of payments and openness of the Indian economy. "The economy must be prepared to move to full capital account convertibility. Bold, carefully calibrated, initiatives can enhance confidence in the economy and augment foreign exchange inflows," Assocham president said.