pres­i­dent writes

Assocham Bulletin - - ASSOCHAM - Mr. San­deep [ajo­dia Pres­i­dent, ASSOCHAM

Dear Mem­ber, It's been more than a year I took over as Pres­i­dent ASSOCHAM and I am happy to say that it was in­deed an hon­our to lead the Cham­ber, con­sid­ered as Knowl­edge ar­chi­tect of Cor­po­rate In­dia; it would be com­plet­ing its 100years of es­tab­lish­ment in In­dia in 2020. While this is an emo­tional mo­ment for me to write this last mes­sage in ASSOCHAM BUL­LETIN as Pres­i­dent- ASSOCHAM, I must say that this jour­ney was truly en­rich­ing in terms of meet­ing many politi­cians, suc­cess­ful busi­ness lead­ers and opin­ion lead­ers of the civil so­ci­ety, and they all agree that only through co­op­er­a­tion be­tween the three main sec­tors of the so­ci­ety (gov­ern­ment, busi­ness and civil so­ci­ety) we can cre­ate sus­tain­able so­lu­tions for any is­sue re­lated to growth of our na­tion. This is why ASSOCHAM will be the or­gan­i­sa­tion that unites all sec­tors of the so­ci­ety to cre­ate sus­tain­able im­pact.

The year 2017 is con­sid­ered as the year of eco­nomic re­forms. The year be­gan with reper­cus­sions of one of the bold move of de­mon­e­ti­za­tion, taken by our Hon'ble Prime Min­is­ter Mr. Naren­dra Modi, fol­lowed by roll out of GST from 1st July, 2017. More­over, im­ple­men­ta­tion of In­sol­vency & Bank­ruptcy Law 2016 & RERA were ef­fec­tively done dur­ing 2017, which has created an­other chal­leng­ing sce­nario for the In­dian econ­omy.

There will al­ways be head winds and tail winds, but the des­ti­na­tion has to be achieved by a con­sis­tent eco­nomic growth which is up­ward of 8,9 and even 10 per cent year af­ter year. What we are wit­ness­ing now in the form of ris­ing value of dol­lar, in­creas­ing crude oil prices, global trade war, volatil­ity in the stock mar­kets and re­pair­ing of the twin bal­ance sheet prob­lem of the banks and cor­po­rates should only pass off as tem­po­rary blips. The gov­ern­ment with the help of the Re­serve Bank of In­dia (RBI) and the states is al­ready on the job to en­sure that no sys­temic is­sues crop up and even if they do; they are ad­dressed with­out any dis­rup­tion to the sys­tem. There is a fair amount of op­ti­mism, even when there are global head winds. Ac­cord­ing to the lat­est IMF pro­jec­tions, our growth rate would be 7.3 per cent this year and 7.4 per cent in 2019 even as In­dia would re­gain the ti­tle of the fastest grow­ing econ­omy of the world.

In­dus­trial pro­duc­tion in the coun­try ex­panded at a five-month high in June with all three ma­jor sec­tors - man­u­fac­tur­ing, min­ing and elec­tric­ity - con­tribut­ing to the re­cov­ery. Growth as mea­sured by the In­dex of In­dus­trial Pro­duc­tion (lIP) stood at 7% in June com­pared with 3.9% in May, ac­cord­ing to data re­leased by the statis­tics of­fice re­cently. The data is line with an eco­nomic re­vival nar­ra­tive, although some ex­perts said more data was needed to con­firm a trend. The lIP num­ber ben­e­fited from the base ef­fect of 0.3% con­trac­tion in June last year.

The Re­serve Bank of In­dia has sprung a pos­i­tive sur­prise on In­dia Inc, keep­ing the lend­ing rates un­changed at 6.5 per cent. The Mon­e­tary Pol­icy Com­mit­tee, by a ma­jor­ity de­ci­sion, has rightly given a re­prieve to the bor­row­ers even amidst global head­winds, par­tic­u­larly con­tin­u­ous pres­sure on the crude oil prices, weak­en­ing ru­pee and at­trac­tion of the USe­con­omy for the global in­vest­ing com­mu­nity. The fact that the MPC did a re­al­is­tic as­sess­ment of the 'sub­stan­tial risks to growth and in­fla­tion out­look' from global head winds and de­cided to read an 'im­per­a­tive' sit­u­a­tion to 'fur­ther strengthen do­mes­tic macro-eco­nomic fun­da­men­tals is laud­able.

The ASSOCHAM ex­pressed the hope that the RBI­would keep a vigil on the chal­lenges of the liq­uid­ity po­si­tion through its in­ter­ven­tions in the form of Open Mar­ket Op­er­a­tions (OMOs) so that the cost of money re­mains in check and in­ter­est rates do not add to the cost pres­sure.

Above all, I would like to con­vey my sin­cere thanks to the min­is­ters, bu­reau­crats, my fel­low mem­bers & col­leagues at ASSOCHAM for their whole hearted sup­port to make my ten­ure a fruit­ful one.

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