Voicing concern over the state of the Indian economy, Confederation of Indian Industry (CII) has unveiled a 10-point agenda for its revival, including fast-tracking the implementation of Goods and Services Tax (GST) and easing FDI regulations in aviation and other sectors.
Addressing a press conference here on Tuesday after CII’s national council meeting here, CII President, Adi B.Godrej, said the GDP growth rate of 5.37 percent registered in the last quarter was lowest in nine years and was a matter of concern. Low economic growth would affect job creation, inclusive growth and social upliftment.
He said the most important reform to improve GDP growth was early introduction of GST, which would be the biggest stimulus. The other steps needed to be taken by the Government and the RBI include a strong monetary stimulus, correcting the current account deficit by encouraging exports and containing imports, arresting rupee slide, reducing subsidies, implementing financial sector reforms and removing bottlenecks in infrastructure growth.
On monetary policy, Mr. Godrej said “we need further reduction in both repo rates and CRR. This is the right time to create monetary stimulus to revive economy”. Unlike Europe, the situation was not beyond control and there was a need to control fiscal deficit and subsidies. If the subsidies were maintained within two per cent of the GDP, the fiscal deficit would be contained and the economy would be benefitted.
On many of these policies to be implemented quickly, there was a need for greater cooperation amongst the Centre, Opposition, State Governments and the industry.
Mr. Godrej said the CII believed that Indian economy was capable of higher growth rate and it was possible to achieve nine per cent in 2013-14. ‘Our objectives is 7.5 per cent growth rate this year”, he added.
The 10-point CII economic revival package suggests reducing Repo rate and CRR, allowing accelerated depreciation for investments in plant and machinery at 25 per cent with immediate effect, increasing FDI limits in civil aviation and defence, allowing FDI in multi-brand retail and providing interest subvention of two per cent on export credit for a temporary period of six months.
Other suggestions are creating an export development fund, clearing 50 large projects in the next 30 days in consultation with State Governments and relevant ministries, announcing a clear plan for fiscal consolidation and 25 per cent weighted tax deduction on expenditure incurred by companies “going green”.
CII president-designate S. Gopalakrishnan said the CII ASCON survey for April-June 2012, representing more than 35,000 companies in 114 sectors, paints a grim picture of the economy. Perception might be worse than reality, but the current negative sentiment would only make matters worse. Positive action might change the sentiment to positive.
Keywords: CII, Indian economy, Goods and Services Tax
Montek and Manmohans policy are mandated by CII/ Brandequityfoundation which is neither a society ,trust or foundation . It is not known under what laws the CII/Brandequityfoundation is governed , there is no account of the working of the CII in the public domain , CII publications are highly priced . CII is emulating the Board of trade of British. A confederation is the sum total of the associations and not a unaccountable entitity in itself .PPP guidelines framed for the states by the planning commission to subvert the contract laws of the land is the biggest ever fraud in the independent India.
Manmohan done a drama on 6th June 2012 to cover Montek . It was niether a planning commission meeting nor a Ministry of programme implementation meeting nor a cabinet meeting nor a PMO meeting nor a tracking committee meeting and what is the outcome document of the meeting broached by Montek Power point presentation.What is the allocation of buisness order or it keeps floating.
Planning commission is a only a advisory body and cannot usurp the executive function of contracting. What is the PPP policy of the government of India and if it has been legally vetted or debated in the parliament.Montek and Manmohan have manipulated/ usurped the constitutional posts and are playing havoc with the polity while being notorious mask of the world bank and IMF . They have vested interests in OIL purchases and are not putting the oil purchases facts in the public domain . They have secretly aligned with the US while hippocratically stating that India has non aligned policy that can not be changed . Why not align as a policy if that can do good to India but then what will happen to the defense kickbacks.Manmohan has aligned wit US as apersonal friend not as a country.Panetta has been assured that India will help track the WWII heros of the axis powers , Manmohan has not mentioned to panetta for the Burma sector war records of the INA.
The solution to increase India's growth rate is to liberate the citizens from the chokehold of New Delhi beauracracy.
Devolve power over all sectors to local, municipal and state government bodies with the exception of defence and external affairs.
Hope the Govt. will be able to put GST in practice and the foolish Satae governments fall in line. If not at least The state governments should abolish road permits,octroy(the purogami Maharashtra) and a same rate of sales tax for within or ouside state sales should be there so that the authorities do not haras business for want of all kind of forms which the other state govt. does not issue in time and the poor man who sales the material has to pay penalty or .....you know better.
Hope the experianced finance minister is reading this as Babus will not let him know about this as more rules make money for ........
Let's rise as a nation against CII and similar organizations. Since 1991, they have managed to manipulate public opinion through the Press to win huge facilities for big industry and corporates. The "growth" they talk of is only their's. It's time they were shown the door. In this hour of crisis all that they care for is protection of their narrow interests.
The leaders occupying various prestigious seats in the govt are never
short of ideas of what's to be done. Their work is commendable in this
respect. Only the 'when' and 'how' it is to be implemented/executed
always keeps hanging in the balance.
Even this measure will get into a rut like all the efforts made earlier because of petty partisan politics of the opposition which for the last 5 years have been increasingly preventing any productive work from happening within or outside the parliament - all in the name of fighting corruption. They appear to want to come back to power on the negetives of the current government than on their own positive proactive cooperation in the interest of nation building and social justice to the common man.
It's high time the Indian Government is ready to take steps to bring back the economy on front foot.We do not hesitate to ask whether the most successful Finance Minister,Pranab Mukherjee did not ascertain the situation in near past knowing the global uncertainity in terms of Fiscal status and Economic conditions turning round in Europe. He all the time tried to convince the people of India that Indian financial status and economic viability is strong.
Why CII is not suggesting increasing of tax rates to corporates to
tide over fiscal deficit? Why dividend tax need to be under DDT? Why
can't dividend be taxed at the hands of receiver as is being done in
most of the countries? What is the contribution of CII in demanding withdrawal of all incentives till the budget deficit is contained to
a sustainable level? While demanding increase in petrol,
diesel,kerosene and LPG, why CII is not demanding steps to increase
in tax revenues by rising taxes to the super rich as was being done
by persons like Warren Buffett? What is the contribution of CII and
its members in providing social security to the labor and aged? What
is the contribution of the CII in providing UNIVERSAL FREE HEALTH
CARE to the needy?
Is CII to extract all the benefits to itself or its members or is it
coming forward to contribute to the society from which they garner
large profits and live ultra luxurious life style by exploiting the
common man?
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