The government is in the process of identifying as many as 30 key industry sectors to keep vigil on their performance and for timely implementation of policies and projects.
The Prime Minister has also decided to convene a joint meeting of the apex industry chambers of industry and key economic ministries to review the progress in these sectors.
This was revealed yesterday by finance minister Yashwant Sinha at his meeting with a delegation of Associated Chambers of Commerce & Industry (Assocham) led by its president L Lakshman in New Delhi.
More From This Section
According to an Assocham press release, Sinha said the new mechanism was imperative to accelerate demand and create a climate conducive to inflow of foreign capital.
Iterating the government's determination to implement all its decisions, the finance minister said the finance ministry had evolved a mechanism for co-ordination with industry and other infrastructure ministries so that the projects in the government could be implemented immediately after September 15, 1998.
In addition, the government was reviewing the on-going projects and all help and support would be extended for their timely completion, the finance minister said.
Responding to the Assocham's president's suggestion for an economic agenda having a consensus among all the major political parties, Sinha said: "A consensus among all major political parties has already emerged and even a change in the government will not derail the economic reforms."
Sinha pointed out that there were signs of revival of the economy in the 19 per cent rise in excise collection in July this year and a 48 per cent growth disbursement of funds by financial institutions in the first quarter of th current financial year against a decline of 16 per cent last year.
The finance minister advocated government-industry partnership for the revival of the economy. In addition to China, he said, India was the only country in the world heading for over 6 per cent growth in its gross domestic product and should take advantage of the situation.
The Assocham delegation raised several issued agitating industry today, such as, the unsustainability of the $15 billion trade deficit, rising inflation, delay in introduction of new legislation, opening up of the insurance sector, banking sector reforms, declining foreign direct investment and funds inflow from foreign institutional investors and problems relating to non-bank finance companies.
Apart from Lakshman, the Assocham delegation included the chamber's alternate president K P Singh, secretary-general E N Moorthy, L M Thapar, Hari Shankar Singhania, Avijit Majumdar, Scott Bayman and the presidents of Assocham's promoter chambers, namely, Shashi Prasad, O P Vaish, Y P Trivedi, M H Ashroff and K K Nohria.
The trade deficit, which was a little over $4 billion in 1993-94 as per Reserve Bank statistics, is estimated to have touched $15 billion in 1997-98, says Assocham.