'Ficci for more trade pacts'

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"We will study the economies in Europe and North America with which we can have FTAs," Modi said. He added that Ficci was looking for synergies in these FTAs.

"There is no cheap labour available in developed countries. Their competitiveness lies in high technology sectors. Our strength is the availability of cheap labour and the ability for mass production."

Modi becomes the fourth from his family to occupy the office of Ficci president. Before him, his uncle Rai Bahadur Gujar Mal Modi, father Kedar Nath Modi and cousin KK Modi have served as Ficci presidents.

Listing his other priorities, Modi said he would press for better availability of long and short term finance, especially for small and medium enterprises. "The banks have given Rs 250,000 crore to the government. This money can be channelised into industry," he said.

In addition, Ficci will set up helpdesks for foreign as well as domestic investors, commission a study on the informal sector, work on WTO issues and urge the government on promoting agriculture.

Talking about the rising public opinion in the West against outsourcing to India, Modi said Ficci was already working with its partners in the US to lobby with state governments and senators to contain the backlash. "The idea is to do it silently without making too much noise about it," he added.

Commenting on the recent reduction in the peak customs duty from 25 per cent to 20 per cent and the removal of the 4 per cent special additional duty, Modi said it was in line with the government's intention of reducing duty to the Asean level. "But if we want to take advantage of it, we need to have one market in the country. There has to be one India. And for this, VAT should be implemented," he said.

He said the government was well within its rights to announce the recent tax and expenditure initiatives, though elections to the Lok Sabha were all set to happen in the near future. "The government should be effective till its last date. It has an active role to play in the economy. Things can't come to a standstill," Modi added.