Ficci to take up reforms with Left

Saroj Kumar Poddar, the new president of Federation of Indian Chambers of Commerce & Industry (Ficci), plans to have regular interactions with the leaders of the Left parties to convince them of the need for more reforms.

In fact, Ficci has already had a meeting with the Left leaders to discuss foreign direct investment in retailing.

"We will try to meet them on a regular basis. It is our job to explain to them the need for reforms and to understand their views," Poddar told Business Standard.

At its meeting with the Left leaders, Ficci said a beginning could be made by allowing foreign investments in agriculture and food processing.

"That can pave the way for FDI in retail. There will be no impact on farmers or small traders," Poddar said.

The new Ficci president has taken it upon himself to clear the picture on labour reforms. He thinks the concept of these reforms is completely misunderstood.

Ficci's concept of labour reform is one that combines flexibility and security. "The Left thinks of it as hire-and-fire. It is not. Our concept is of contract labour in export processing zones, leading to export-oriented industries and manufacturing. This will lead to growth of employment," said Poddar.

The Ficci president also called for abolition of fringe benefit tax. "That is our objective number one. At least, the FBT should be modified to allow genuine business expenditure," he said. Ficci is especially opposed to the separate filing of the FBT and calls it cumbersome and unnecessary.

The second priority is investment in infrastructure and the third is to support small- and medium-enterprises through development finance.

Poddar called for abolition of reservation for small-scale industries. "What is the point? Overseas companies can manufacture an item abroad and bring it without paying any Customs duty. But, due to reservation, Indian companies cannot manufacture that item," he said.