Some major measures are also expected in the crisis-agricultural sector which needs a huge public investment in areas like irrigation, rural infrastructure and power supply. Besides, the government is also likely to continue with support in inputs like fertilisers etc.
"The rural economy needs immediate support in the absence of market risks and unfavourable weather conditions with attendant issues for a host of industrial sectors like farm equipment, motorcycles, sugar mills, food processing and fertilisers. Having taken several initiatives to unclog infrastructure projects and improve the Ease of Doing business, Prime Minister Narendra Modi's government is expected to give increased attention to the rural economy, although several of the financial inclusion programmes like the Jan Dhan Yojna would help the countryside," ASSOCHAM President Mr Rana Kapoor said.
He said while the ASSOCHAM has already given seven out of 10 for the one-year performance of the Modi government with regard to moderating inflation, stability in foreign exchange, reforms in insurance and defence production, there are select sectors of the economy which are under stress. These include the housing, real estate, banking, telecom. Of late, the merchandise exports are also causing some anxiety with slowdown in global demand.
"But some of the innovative initiatives like monetisation of gold would bring in much-needed stability in the country's balance of payment by way of reduction in gold imports. Besides, there are hopes that the GST Bill would finally move towards a law," the ASSOCHAM chief said.
He also welcomed formation of an expert committee on resolving taxation issues like Minimum Alternate Tax for the foreign institutional investors.
According to the ASSOCHAM assessment, for kick starting the economic growth, domestic consumer demand has to be revived with improving the sentiment on employment opportunities. "Consumer demand and the employment prospects are closely connected. Sectors like tourism, aviation are some of the low hanging fruits, which must be ripened and plucked. They will create a huge employment opportunities along with creating an uptick for sectors such as construction and real estate.
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It said, a holistic view must be taken about the stressed assets in banks so that we are not left with large and uncontrolled non-performing assets. Once these sectors look up, the manufacturing revival will pick up towards the completion of the recovery cycle. Besides, the international commodity pricing would also hold the key, the chamber said.
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