Taking charge as the president of the Federation of Indian Chambers of Commerce and Industry (Ficci), Rajan Bharti Mittal said he would focus on internal administrative and legislative reforms to get more investment into India.
Mittal, who is the vice-president and managing director of Bharti Enterprises, succeeded Harsh Pati Singhania, managing director of JK Paper, as the president of Ficci on Tuesday. After assuming office, he set out his agenda for focusing on higher inflows of foreign direct investment (FDI) into India. The industry lobby has set a target of getting $75 billion (Rs 3.4 lakh crore) through FDI by 2015.
He said reforms in the country are necessary to sustain growth at this juncture. “India is ranked very low as far as ease of business is concerned. That is why we are losing out. The three ‘Rs’ of rules, regulations and red tapism are preventing India from getting investments,” Mittal said.
‘Up to 28 clearances needed for a unit’
He added that, currently, companies have to get 20-28 clearances to set up a manufacturing unit in any state and, therefore, state administration and legislation should be simplified to attract investors. He called for internal reforms at the state level, including land and labour law reforms in order to achieve a double-digit growth rate on a sustained basis through a high investment rate in the coming years.
Mittal established infrastructure and manufacturing as the two sectors that will be the priority for the industry lobby in the coming financial year. Acknowledging consistently high food inflation as a major problem, he said the government should involve the private sector in tackling the problem.
“As far as food inflation is concerned, India needs to think differently and private participation is needed to tackle the problem. Contract farming needs to be encouraged. Agriculture acts in different states need reform,” added Mittal.
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To implement such an agenda, Ficci will campaign for a national effort to increase FDI inflows, position India as the next manufacturing hub and undertake promotional efforts and advocate policy issues to improve the investment policy framework.
Ficci will also hold a national conference on state level reforms and operationalise ‘Invest India’, a company owned by Ficci and the government, to act as a comprehensive source for information and guide companies who wish to invest in India.
Set to clinch Zain deal: Mittal
Rajan Bharti Mittal said it is hopeful of clinching the $10.7-billion (nearly Rs 50,000-crore) deal with Kuwaiti telecom firm Zain for its African assets, for which the two companies have agreed to hold exclusive talks till March 25.
He added that it was still premature to talk about an extension in the exclusive talks’ period. “We are very hopeful,” he said.
Last month, Bharti Airtel had entered into exclusive talks with Zain for acquiring its African operations. The deal does not include Zain’s operations in Morocco and Sudan.