As guidelines to achieve 6.5 per cent Gross Domestic Product (GDP) growth in FY-15, industry chamber Confederation of Indian Industry (CII) on Tuesday proposed its 100- day Agenda for the new Government. As per the agenda, CII urged for immediate introduction of Goods and Services Tax (GST), containing subsidies, monetary easing and fast-tracking of stalled projects.
The industry body also stressed for a strong inter-ministerial coordination group to help in resolving issues like the mining conundrum and raw material securitisation for sectors like steel. Ajay Shriram, newly appointed President of CII said, “A strong economic revival package and right implementation of policies by a fresh Government can help create as many as 150 million jobs in the next ten years. Need of rapid economic growth and job creation is very critical for the economy.”
However, Shriram added that in case of a fractured mandate in the ensuing general elections, “There would be loss of investor confidence and jobs would be destroyed in organised sector with no signs of economic reforms.” He further added that the country could achieve GDP growth rate of 6.5 per cent, provided systemic reforms are carried out quickly by the new Government.
“Industry is looking for top policy steps such as the introduction of GST, easing of interest rates by 100 bps, keeping subsidies at 1.7 per cent of GDP and restructuring of labour laws to promote mass manufacturing,” Shriram said, adding that a market-friendly environment is required to promote investments, business and entrepreneurship. While assuring the industry, he added, “We will continue to push the new Government to implement GST.”
He also stressed on timely implementation of the Delhi Mumbai Industrial Corridor project, setting up of state level mechanisms similar to project monitoring group and an institutional mechanism to renegotiate the terms of concession in PPP contracts to salvage stranded investments.
He asked for restructuring of labour laws, including introduction of fixed term employment for industry to hire manpower on short term assignments. Commenting on the proposed job reservations in the private sector, he said, “We feel having reservation in the private sector is not a desirable direction. We have focused as an association very strongly on affirmative action.”
To boost the industrial sector growth, he called for quick implementation of the National Manufacturing Policy. Shriram also said, “There is a need to revisit free trade agreements. Government should also fast-track the process of public sector disinvestment and create a policy framework for monetising unutilised assets and land resources of the Government and public sector undertakings.”
