India Inc's fears put to rest, say chambers

The Associated Chambers of Commerce and Industry of India (Assocham) and PHD Chamber of Commerce and Industry (PHDCCI) today welcomed President APJ Abdul Kalam's address to the joint session of Parliament.

Assocham President M K Sanghi said it would definitely go a long way in assuaging the fears and apprehensions of the business and investor communities, besides instilling confidence and stabilising capital market oscillations.

He said industry was assured and hopeful that the Budget to follow would now be on similar lines, thus boosting economic growth.

Sanghi complimented the government for recognising the need for making labour laws flexible, and yet giving them a human face, so that employment opportunities could be increased and quality and productivity improved.

The promise of massive public investments in infrastructure, rural development, agriculture and industry, a boost to foreign direct investment (FDI), selective privatisation and comprehensive tax reforms aimed at widening the tax base in the country would definitely be instrumental in the achievement of a sustained 7-8 per cent growth in the country for years to come, Sanghi said.

He hoped that the exercise of consultation with trade and industry on the value-added tax (VAT) would be done without any further delay and that the VAT regime would be introduced before April 1, 2005.

Sanghi also hoped that in the near future, the ruling coalition would focus on much-needed expenditure rationalisation and gradually concentrate on policy making and regulatory activities.

Ravi Wig, president, PHDCCI, said the address outlined a roadmap for the new government to undertake various policy initiatives aimed at accelerating economic growth. The PHDCCI chief also welcomed the initiative to increase FDI inflows.

"It is, however, desirable that a conducive and facilitative environment is created to encourage competition in the economy. It will be necessary that the government provides a stable policy regime in the long-term perspective," Wig said.

The comprehensive tax reforms system should be met by expanding the tax base and encouraging voluntary tax compliance, Wig added.

Commitment to amend the labour laws was also a welcome move. The manufacturing sector is always ready to extend all social benefits to the workers as laid down in the law, Wig added.