Captains of industry and commerce are of the view that if the 6 per cent growth rate projected by the Economic Survey is to be achieved, further economic reforms and fiscal consolidation are imperative.
Agreeing with the assessment made by the Survey that the economic slowdown ``is a wake-up call” for stepping up reforms, the industry reiterated its demand for the implementation of reforms to boost investor confidence and achieve economic growth rate of over 6 per cent in 2013-14.
According to the Survey, the economy is expected to grow by 6.1-6.7 per cent in the fiscal year to March 2014, higher than the 5 per cent predicted for the current year but well below a peak of 9.3 per cent reached in 2010-11.
“Green shoots certainly seem to be on the horizon, and the closely tracked PMI number also shows an uptick in the last few months. The Survey has pointed out the need to build on this momentum. The envisaged growth, highlights the survey, can be achieved if India continues to remain firm on the path of reforms,” said Naina Lal Kidwai, President, Federation of Indian Chambers of Commerce and Industry (FICCI).
Associated Chambers of Commerce and Industry of India (Assocham) President Rajkumar Dhoot pointed out that given the challenging internal and external conditions, revival of growth required government initiative to announce a stimulus package as was done in 2009.
The government’s public finances were already in bad shape. Therefore, it must seriously initiate reforms process that would help remove infrastructure bottlenecks, bureaucratic delays and, he added.
“The Economic Survey has rightly pointed to the slowdown as a ‘wake-up call’ for stepping up the pace of reforms. Its emphasis on job creation through a facilitative business climate, especially for small enterprises, converges with CII’s (Confederation of Indian Industry) views on livelihood generation and investment revival,” said Adi Godrej, President, CII. Mr. Godrej welcomed the Survey’s emphasis on fiscal consolidation through broadening the tax base and targeting wasteful and distorting subsidies.