India, Feb. 2 -- The single biggest piece of reform will come next week. The finance minister has said that she will introduce a new income tax bill in Parliament next week. India has been waiting for a new direct tax code - the new bill could pretty much be that - for decades now.

The budget also slashed customs duty on several products. This is in keeping with the stated objective of correcting what has often been criticised as an inverted duty structure where inputs face higher tariffs than finished products. This adds to the costs of products made in India and makes them less competitive in export markets. How far this year's customs duty corrections take us towards getting rid of inverted duties will have to wait for more detailed a...