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Revisiting reforms hailed

Special Correspondent

Poor performance of agricultural sector a cause for concern

— PHOTO: KAMAL NARANG

A GOOD GUIDE: Economic Survey 2008-09 papers arriving at the Parliament House in New Delhi on Thursday.

NEW DELHI: Major industry and commerce bodies on Thursday welcomed the reforms proposed by the Economic Survey but were bothered by the poor performance of the agricultural sector.

Confederation of Indian Industry President Venu Srinivasan welcomed the survey’s proposal for revisiting the economic reforms agenda and said that the implementation of these reforms would go a long way in enhancing the growth potential of the economy.

Mr. Srinivasan said the survey mentioned reforms including tax reforms, rationalisation of subsidies, disinvestment in public sector units and FDI in insurance and pensions. He said that disinvestment would provide the government with funds.

Federation of Indian Chambers of Commerce and Industry President Harsh Pati Singhania hoped that the general budget would reflect the reforms suggested by the Economic Survey and welcomed the three pronged strategy for sustaining the growth rate through buoyant domestic consumption in the face of global recession, calibrated phase out of fiscal deficit and encouragement of investment.

Mr. Singhania was also pleased with the recommendations of the economic survey for garnering revenue through strategic disinvestment policy.

He pointed out that the survey called for initiating the process of selling 5-10 per cent equity in identified profit making non-Navratna PSUs, listing of all unlisted PSUs and selling a minimum 10 per cent equity to public and auctioning of all loss making PSUs that cannot be revived.

Associated Chambers of Commerce and Industry of India President Sajjan Jindal expressed his concern over the decrease in the growth rate of agriculture to 1.6 per cent in 2008-09 from 4.9 per cent during the three previous years.

Mr. Jindal hoped that the government would pump in money to create social infrastructure in rural India including assured irrigation facilities and reforms in the agriculture sector. Higher investments in agriculture will uplift its current face, he added.

PHD Chamber President Satish Bagrodia expressed his concern over the drop in consumption and welcomed the action proposed by the survey to lift the economy from the slowdown.

Mr. Bagrodia welcomed the prescription of sweeping tax reforms including the phasing out of all cesses and surcharges on taxes and securities transactions tax, fringe benefit tax, rationalize the dividend distribution tax and introduce a new income tax code.

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