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CII unveils 100-day agenda for new govt; stresses on GST

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Press Trust of India New Delhi
Last Updated : Apr 01 2014 | 4:10 PM IST
Boosting economic growth in India requires immediate introduction of Goods and Services Tax, containing subsidies, monetary easing and fast-tracking of stalled projects, CII said today.
In its 100-day action agenda for the new government, the industry body said a strong inter-ministerial coordination group is required to resolve sticky issues like the "mining conundrum" and "raw material securitisation" for sectors like steel.
"Economic growth and investments have stagnated. We require rapid economic growth for job creation. We will share the agenda with the new government and discuss each point with them. Implementation of GST will boost GDP by 1.5-2 per cent," CII's new President Ajay Shriram told reporters here.
He said India can achieve GDP growth rate of over 6 per cent, provided systemic reforms are carried out quickly by the new government.
However, Shriram added that in case of a fractured mandate in the ensuing general elections, "there would be loss of investor confidence and jobs would be destroyed in organised sector with no signs of economic reforms".
A strong economic revival package and right implementation of policies by the new government can help create as many as 150 million jobs in the next 10 years, he said.

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"Industry is looking for top policy steps such as the introduction of GST, easing of interest rates by 100 bps, keeping subsidies at 1.7 per cent of GDP and restructuring of labour laws to promote mass manufacturing," Shriram said, adding that a market-friendly environment is required to promote investments, business and entrepreneurship.
Further, he stressed on timely implementation of the DMIC project, setting up of state level mechanisms similar to project monitoring group and an institutional mechanism to renegotiate the terms of concession in PPP contracts to salvage stranded investments.
"There is also an urgent need to expand e-governance and technology based initiatives to simplify processes and online monitoring of application forms besides time-bound approvals by introducing deemed approvals in case of delays beyond prescribed limit," Shriram said.
He asked for restructuring of labour laws, including introduction of fixed term employment for industry to hire manpower on short term assignments.
On the Congress party's promise to extend job reservations to the private sector, he said: "We feel having reservation in the private sector is not a desirable direction. We have focused as an association very strongly on affirmative action". CII will discuss the matter with the party, he added.

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First Published: Apr 01 2014 | 4:10 PM IST

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