Industry body PHD Chamber of Commerce and Industry Saturday said that the country is economically better placed now as compared to six months ago, due to improving economic indicators such as inflation and industrial output.
According to the industry chamber's President Alok B.Shriram, the macro-economic situation of the country has improved in terms of inflation, industrial output (IIP), core infrastructure and exports.
"The real gross domestic product (GDP) of the country has improved to 5.5 percent in the first half of 2014-15 as compared to five percent in the corresponding period of 2013-14," said Shriram.
Citing the improved macro-economic environment, Shriram said that the economy has once again emerged as a major investment destination which is visible from the recent Vibrant Gujarat Summit which witnessed the signing of a whopping 21,000 Letters of Intent (LoI) worth Rs.25 lakh crore.
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"We appreciate the recent policy pronouncements such as launch of Make in India, Digital India, repealing of archaic labour laws, approval to amendments in labour laws along with launching of labour portal," Shriram said.
"Clearing of major infrastructure projects are inspiring and are expected to improve India's ranking in the ease of doing business index in the coming times."
Shriram emphasised that the revival of industrial activity should be the utmost priority and implementation of recent reform measures to ease doing business in India are expected to recapture the growth momentum.
Shriram pointed to the need for ensuring easy availability of credit, which would boost investments and create a conducive business environment.
"We appreciate the recent move by Reserve Bank of India (RBI) in which repo rate has been slashed by 25 bps. However, there is a need to lower it further atleast by 200 bps in the coming times as the cost of borrowings is significantly higher as compared with India's competitors in the international market," Shriram said.
Shriram added that implementation of well designed Goods and Services Tax (GST) at the earliest, by reducing state border taxes, will have the important consequence of creating a pan-India common market, which will be critical for our growth in the coming times.