Ficci wants Rahul's views made "practical"

Industry chamber was in all praises for promise of tax reforms made by BJP prime ministerial candidate Narendra Modi

Days after Congress Vice-President Rahul Gandhi presented his economic road map before it, the Federation of Indian Chambers of Commerce and Industry (Ficci) said on Monday there was a huge gap between what he said and what was happening on the ground, though business would like the next government to implement his vision.

“There is a huge gap between what was mentioned by him and what is happening. Whoever comes to power, the industry would like to see the policies he had lined up to be made practical,” R V Kanoria, chairman of Kanoria Chemicals and Industries and past president of Ficci, told a press conference here.

Addressing the body’s annual general meeting last month, Gandhi had promised time-bound decisions on infrastructure projects, balancing of environmental clearances with industry needs, fast-tracking more clearances through the Cabinet Committee on Investment, building a robust and open real estate market and a framework of legislation to fight corruption.

By contrast, Ficci seniors had praise for the promise of tax reform made by Bharatiya Janata Party prime ministerial candidate Narendra Modi. Asked about Modi’s promise to re-look at the tax regime, Ficci President Sidharth Birla said, “That is what the industry had been asking for. There needs to be some stability on this. It needs to be seen how much creativity one can add to this.”

On Sunday, Modi had said: “The present taxation system is a burden on the common man. There is a need to reform it and and introduce a new system.”

Ficci has announced its own vision for the next government, an agenda for long-term growth. “We wish to see India get back to a high growth track. Healthy economic growth on a sustained basis is imperative for job creation and the long-term wellbeing of the nation. Adding a needed 10-12 million jobs annually requires (annual) growth of the order of eight-nine per cent over a long period,”  Birla said.  

He said hard decisions were a must to keep the governent’s fiscal deficit in check.  This had touched close to 94 per cent of the year’s Budget Estimate in the first eight months of this financial year. Said Birla: “Plan capital expenditure should not be compromised for revenue spending. Social spending is a short-term measure for job creation... A permanent solution lies in linking social spending to asset creation and skill building. For instance, appropriate linkage of MGNREGS (the national rural job guarantee) with productive work would meet inclusivity objectives, while adding to growth.”

The chamber said policy intervention was needed to curb import of natural resources available in abundance domestically, to bring the current account deficit down to sustainable levels.

Besides, it sought a pro-investment policy. “We must be seen as a nation inviting capital. Clarity in policy formulation, greater certainty in legislative interpretation, beside time-bound, transparent implementation of policies with minimal discretion, is what business relentlessly seeks. If we deliver on these as a country, we will see more investments flowing both from within and abroad,” Birla added.

In its report, the industry body emphasised on raising of agricultural production and productivity, improving the supply chain infrastructure and marketing mechanisms for edible products to bring down food inflation. Wholesale  price index-based food inflation was 18-20 per cent in recent  months.