- post 1999-2000
- aim to continue benefits from 1st generation reforms and also to plug loopholes
- difficult to implement
Focus areas
- industries relied on contractual labour, not permanent
- industries prefer efficient and trained labour and liberal labour laws (hire and fire)
- removal of subsidies on retail items like petrol, diesel etc
- govt interference in pricing mechanism for various commodities distorts market for private participation
- also increase govt deficit
- govt nudged people to take up individual steps to help meeting govt aims
- eg: facilitating taxpayers, Give It Up for LPG subsidy