'Common market can up North's GDP by 2%'

Infrastructure is what Indian industry needs to focus on, according to L K Malhotra, senior vice-president, PHD Chamber of Commerce and Industry (PHDCCI). Plus, there is the challenge of taking the issue of a common economy for North India forward, something the chamber has been rooting for, for quite some time now.

Malhotra, who is most likely to take over as the president of PHDCCI this month, talks to Rayana Pandey on the key focus of the chamber in the coming year.

Yours is the only industry chamber that has been arguing in favour of a common economy for north India. Why do you think that is crucial?

The common economy is a reflection of our commitment to a hassle-free, vibrant and expanding integrated market. It is in line with our resolve to serve industry in North India better. Collective gross domestic product (GDP) in the Northern states can increase by 2 per cent if the inter-state and trade barriers are removed. This would mean an addition of $ 8-10 billion.

What challenges do you foresee in realising such an integrated market?

It is a difficult process since it involves co-ordination at all levels to ensure free movements of goods, be it regulating mandis and trade, movements of vehicles, quality assurance, processing goods, storage and so on. T K A Nair, principal secretary to the Prime Minister, had called for a standing committee of state secretaries to push this concept. We are hopeful this will be realised in the near future.

What will be the focus of PHDCCI in the coming one year?

The year is going to be very crucial because we will focus on three key issues, namely infrastructure, agriculture and food processing. As infrastructure is the backbone of any economy, it needs to be upgraded and strengthened.

This would also mean focusing on related sectors like cement. Also, the amount of foodgrains and products wasted in our country is huge, and this needs to be looked into.

How is the chamber operationalising the north Indian economy?

Currently north India contributes nearly 40 per cent of the country's GDP. We are trying to move towards an integrated market, and want a step-by-step removal of inter-state barriers to trade, apart from promoting e- governance, encouraging hydroelectric projects and so on. All these issues were raised at the chief secretaries' summit we had this year. Through fora like this we plan to take these issues forward.

You have had a lot of interaction with the Islamabad Chambers of Commerce and Industry. What are the issues that are being looked at?

As of now, opening up roadways and hence trade between the two neighbours are key items on the agenda. Land routes to Pakistan can also give us easy access to the central Asian market, which is vital. Shipping goods takes about two months whereas by road it can be done in a matter of days. SAARC will not make headway unless the road routes are opened.

Has the present political turmoil in Pakistan affected business-to-business relations?

There is a feeling in both the PHDCCI and Islamabad Chambers of Commerce and Industry that politics should not affect the way we do business. We are planning to make efforts in strengthening trade between the two countries.

How do you see the role of the PHDCCI expanding?

There is scope for more work within north India itself. There are so many associations that are not heard. Our aim is to give voices to those associations.