There is no doubt that the Indian economy will clock in growth rates in excess of 5.5% projected by the International Monetary Fund, said Mr. K.M.Chandrashekhar, Cabinet Secretary, Government of India. He was speaking at the Closing Session “Turning Crisis into Opportunity: Scope for Economic Reforms” at the National Conference an Annual Session, 2009 of Confederation of Indian Industry (CII) held here today. Most sectors such as cement, steel, capital goods, auto, passenger cars and trucks have recorded a growth in the last quarter, said Mr. Chandrashekhar.
While applauding the efforts of the industry in dealing with the crisis, Mr.Chandrashekhar urged India Inc to play its role in rebuilding confidence. “Traditional markets are drying up therefore looking for new markets is crucial”, he added. The fiscal space is now limited and any more measures by the government would mean crowding out the Private Sector investments, he said. Referring to the forthcoming meeting of the Heads of State of the G20, the Cabinet Secretary highlighted the need for multilateral cooperation both at the country and industry levels.
Speaking on similar lines, Mr.Ashok Chawla, Secretary, Department of Economic Affairs said “unless all major economies of the world work together and unless the US fixes its plumbing, the problem in the rest of the world, including India will not go away”. Mr. Chawla further highlighted that it was India and China that were growing in the current economic crisis and India was fast catching up with China’s growth rates.
Speaking at the session, Mr. Gopal Pillai, Commerce Secretary, Ministry of Commerce & Industry, expressed concerns about the rising trade protectionism in countries experiencing a trade surplus. “While India’s exports are still growing at 19% in a scenario where the global trade is contracting, some countries with trade surplus are putting in place protectionist measures”, said Mr. Pillai. He further urged industry to work with the Government in bringing such non tariff barriers to the fore.
Giving the Planning Commission’s perspective of handling the current crisis, Dr.Subhash Chandra Pani, Secretary, Planning Commission said “We are trying to ensure that the Rs. 3 lac crores is spent by the States. We are working towards resolving the problems to enable this spending”. The current opportunity is being used to provide development in the most backward states, added Dr. Pani.
Mr. P.V.Bhide, Secretary- Revenue, Ministry of Finance, while complimenting India Inc on meeting their tax responsibilities, said that the revenues in the current fiscal will exceed that of last year inspite of the sacrifices made by the Government. He further assured the industry that the general direction of making improvements will continue though there was little room left for fiscal measures.
Complimenting the Government on the quick reaction to the economic crisis, Mr.K.V.Kamath, President, CII said “the general improvement in the climate would not have been there but for the quick action by the government”.
Mr. Venu Srinivasan, Vice President, CII in his Closing Remarks said “Going forward India will reach its potential but this will be possible only if we look after the health, education and infrastructure of our country”.