Recent measures to help revive the economy were delivered in three quick doses by GoI on the back of the ‘mini-crisis’ of the GDP growth rate for Q1 FY2019-20 hitting 5%, a decline for five quarters in a row.The first two doses were intended to stabilise the patient and rectify mistakes made in the Budget — tax on rich individuals, lack of clarity on angel tax , restrictions on ecommerce, criminal penalty on corporate social responsibility (CSR), etc — as well as some small measures to boost demand for the automobile industry, encourage exports and complete housing projects.The third dose was a reduction in corporate taxes to 25.2% for existing investments for large corporates from 35%, and 17.2% (including surcharges) for new investments in manufacturing. This was intended to revive investment and boost growth. Data shows that a 10 percentile point reduction in the effective corporate tax has a 2-3 percentile point increase in the investment rate, with a bigger effect in manufacturing than in services.India’s corporate investment rate fell by about 5-6% of GDP after the 2008 global financial crisis, and never recovered since. Lower corporate taxes could also increase formalisation, increase labour productivity and reduce the debt-equity ratio.These cuts will take time to transmit into new investment. Positive investment effects are usually enhanced if other reforms accompany a cut in corporate taxes, such as a more open and competitive trade regime, a less restrictive labour market, reduced cost of credit, better regulation and less red tape, and sufficient infrastructure.Without these accompanying measures, the effects are weaker, and corporates will use the tax reduction for stock buybacks and other expenditures.Estimates of revenue losses of around 0.7% of GDP due to the tax cuts are likely to be much lower, as all exemptions have been removed and new investment will spur growth and revenue intake from a higher base.More aggressive privatisation of State-owned companies would be a good way to make up the revenue shortfall, which will, in any case, pay higher dividend to government. The clarification on angel tax and allowing CSR on research-related expenditures will also help boost badly needed R&D and encourage startups.So, do we need to wait for another crisis to trigger accompanying reforms? Will GoI think it’s done enough? GoI should ride the wave and unleash more bold reforms that will bear fruit in the coming 3-4 years, and will complement the cut in corporate taxes to create greater synergy for more investment and job creation.A round of reforms to boost agriculture would be a great help to boost growth and rural demand. Removing the Essential Commodities Act, and reforming the Agricultural Produce Market Committee (APMC) would be logical reforms. Removing subsidies on fertilisers and electricity, and increasing funds to Pradhan Mantri-Kisan Samman Nidhi (PM-KISAN) and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme would be the Pareto-optimal and fiscally neutral way forward.Working with willing states for a new labour policy that removes all restrictions would be a huge reform. Such a move should lead to a big increase in foreign direct investment (FDI), especially in labour-intensive industries. India’s restrictive labour laws, in the words of Atal Bihari Vajpayee, are ‘anti-worker’, as they only serve the interests of a tiny minority of largely unproductive workers.GoI has adopted the target of $1trillion in exports to achieve the $5 trillion GDP target by 2024-25, and has recognised that this will require exports to grow by 18-20% every year. With a benign global environment between 2000 and 2013, India’s non-oil exports grew by 18% a year and GDP growth exceeded 8% a year, it’s fastest growth ever. But even in the more difficult environment of slow global growth, if it puts its mind to it, India may be able to achieve similar export growth, being such a small player in global markets.Among the world’s top 20 importers, India is among the top 10 exporters in four markets: the UAE, the US, Hong Kong and Turkey. India has more than 5% market share in exports only in the UAE. It has 2-3% market share in Turkey, the US, Hong Kong and Singapore, and around 1% share in Britain, South Korea, Italy, Mexico, Belgium and Spain. In all other top 20 markets, India has less than 1% market share, figuring marginally in Chinacentred supply chains, but not much in Europe or US-centred ones.Clearly, there is a huge potential to increase India’s share of exports in these top 20 markets and in new markets, such as Latin America and Africa.It will not be easy, and will require a new strategic trade and industrial policy — not just a few small incentives here and there — as well as liberalisation of agro-based exports. A US India trade deal and India’s signal to join the Regional Comprehensive Economic Partnership ( RCEP ) will be positive signals as well. A major push to attract tourism will also boost new investment and job creation.