Speed up IBC process, cut PSB stakes: OECD

New Delhi, Oct 4, 2023

Paris-based OECD has suggested that the government should accelerate the insolvency and bankruptcy (IBC) process and reduce government ownership in banks and financial institutions, while addressing key performance gaps, including "increased role" of private conglomerates which are seen to have "negative consequences for competition".

While the agency took note of reforms in several sectors, from defence and oil to finance, it did not elaborate on the issue of conglomerates, which was listed as part of the reforms needed to improve product and labour market functioning.

Putting out data to show lower labour productivity and higher unemployment rate than OECD countries, a majority of which are developed nations, the agency, often referred to as a rich nations club, called for "creation of quality jobs by modernising labour regulations and skill development programmes".

OECD highlighted the dependence on fossil fuel and listed air pollution, extreme weather episodes, and droughts in India becoming increasingly problematic as performance gaps on the climate change front. It then went on to recommend an increase of share of renewable energy in the overall mix - an area where India has made significant strides - along with reform of power distribution companies as areas that need attention.

"Provide additional government's support to shift household cooking fuels from biomass-based to less carbon-intensive sources," it said in a report 'Going for Growth' that focuses on reforms that countries need to undertake to deal with the current economic slowdown and focus on vulnerable groups.

[The Times of India]