In­dus­try Cham­bers Ready with their Eco­nomic Agenda

Call for quick ac­tion to cur­tail in­fla­tion, pass GST, ease land ac­qui­si­tion hur­dles

The Economic Times - - Economy - OUR BUREAU

It may take an­other week be­fore a BJP-led govern­ment takes over, but in­dus­try cham­bers want it to hit the ground run­ning, to lift the econ­omy out of a slow­down with quick ac­tion to ease land ac­qui­si­tion hur­dles, cur­tail in­fla­tion and clear pas­sage for GST, among oth­ers.

“A huge thrust has to be on im­ple­men­ta­tion since that yields re­sults most vis­i­bly,” said CII pres­i­dent Ajay Shri­ram. “Then there are ir­ri­tants like the Land Ac­qui­si­tion Act and the new Com­pa­nies Act, which need com­pre­hen­sive over­haul to make them prac­ti­cal in the con­text of re­al­i­ties to­day,” he added.

Ficci has rec­om­mended a 12point agenda for the new govern­ment and em­pha­sised the need to deal with food in­fla­tion and roll out of Goods and Ser­vices Tax by 2015.

“…the in­terim weeks must be lib­er­ally used by our lead­er­ship to project its vi­sion and set a pro­gres­sive tone and di­rec­tion. We also hope to see mea­sures on in­fla­tion mit­i­ga­tion and restor­ing con­fi­dence be­sides road maps on job cre­ation and na­tional com­pet­i­tive­ness,” said pres­i­dent Ficci Sid­harth Birla.

Lower in­fla­tion will give room to RBI to cut rates and fa­cil­i­tate eco­nomic re­vival. In­fla­tion based on the Whole­sale Price In­dex fell to a lower-than-ex­pected 5.2% in April from 5.7% in the month be­fore, mak­ing a case for an­other sta­tus quo in the June 3 pol­icy re­view.

Mean­while, global rat­ings agency Moody’s has given a credit pos­i­tive to the ‘de­ci­sive elec­tion re­sult’ de­clared on Fri­day, which gave a clear ma­jor­ity to BJP with 282 seats.

Mar­kets have re­sponded very pos­i­tively to the BJP’s thump­ing vic­tory un­der the lead­er­ship of Naren­dra Modi, who has promised to fo­cus on growth. The ru­pee on Mon­day ap­pre­ci­ated to an 11-month high of 58.59 a dol­lar, up 20 paise from its pre­vi­ous close while BSE Sen­sex closed 1% higher at 24,363.05.

A CII-KPMG re­port on ‘Ease of Do­ing Busi­ness in In­dia’ re­leased on Mon­day iden­ti­fied key ar­eas for re­form which will en­able do­ing busi­ness in In­dia, in­clud­ing set­ting up of busi­ness, land ac­qui­si­tion, taxation and con­tract en­force­ment.

The re­port pointed out that it takes an aver­age of 14 months to ac­quire land and rec­om­mended set­ting up of large des­ig­nated in­dus­trial zones with pre-clear­ances along with sin­gle-win­dow reg­is­tra­tion and mu­ta­tion process.

As­socham pres­i­dent Rana Kapoor said that while the in­dus­try had strong reser­va­tion on the new Land Ac­qui­si­tion Act, the im­me­di­ate so­lu­tion lied in the Cen­tre and states team­ing up and cre­at­ing land banks that should be then al­lot­ted to the in­dus­try for man­u­fac­tur­ing and in­fra­struc­ture fa­cil­i­ties.

“As long as the process is trans­par­ent and stake­hold­ers like farm­ers are taken on board, there is no rea­son things should stay mud­dled,” he said.

Kapoor said the full-fledged budget next month should send a strong mes­sage that the tax regime would be clear cut, non-dis­cre­tionary to dif­fer­ent in­ter­pre­ta­tions and un­der no cir­cum­stances would be ret­ro­spec­tive.

Ficci has sug­gested that the new govern­ment may an­nounce 2-3 mega in­fra­struc­ture projects such as high­speed pas­sen­ger train cor­ri­dors, pucca roads to each vil­lage, a PPP ad­vi­sory unit to re­vive stalled projects and pri­vati­sa­tion of ports.

Fu­ture course for new govt

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.