The Federation of Indian Chambers of Commerce and Industry (FICCI) on Tuesday demanded that the Centre consult industry while continuing with its process of rolling back the stimulus package.
FICCI President Rajan Bharti Mittal said that the objective of the government should be to engage captains of industry on how it intended to go about the process of unfolding the stimulus package stressing that the progression had to be done sector-wise. Talking to reporters he said that manufacturing and export sectors and the small and medium enterprises need to be protected for a greater length of time. The recovery on the export front had just about begun and any tinkering with the situation would only harm the cause, Mr. Mittal stressed.
Mr. Mittal said the government had rightfully spared the export sector in the budget proposals while partially rolling back the stimulus package.
He also underlined that industry did not expect the stimulus package to continue for perpetuity. “It has to be gradually taken off and industry cannot be on crutches.” While responding to the need for a 10 per cent growth rate, Mr. Mittal said that that would entail an investment of $75 billion by 2015 and that was not possible without simplifying rules, regulations and red tape. At the same time, Mr. Mittal felt that the Centre now had just a few more things to do and the real job now had to be done by the States.
He basically was for doing away with the inspector raj underscoring that it required 28 clearances to set up even a retail shop in the cities.
To get the States on board, Mr. Mittal intends to hold a conference of chief ministers to seek their help in tackling the tricky problem of land reforms and labour laws for a win-win situation for all concerned. The FICCI intends to present them with some models knowing well that social considerations had to be addressed.
In reply to a question, Mr. Mittal said that he was hopeful of Bharti Airtel acquiring the African unit of Zain at the talks to be held this month for $10.7 billion.
He declined to comment when asked if there was any need to extend the period of talks but said that the completion of the deal was subject to due diligence, customary regulatory approvals and findings of the final transaction documentation.
