The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has urged Prime Minister Narendra Modi to give a big impetus to the infrastructure sector and encourage the growth of the MSME sector.
The chamber, in a pre-budget memorandum submitted to the Prime Minister, has said that initiatives such as providing credit at affordable rates and increasing marketing funds to the micro, small and medium enterprises should be actively pursued. Further, it would be beneficial to provide tax concessions on goods procured and traded by this sector within Karnataka, which would help in revitalising the MSME sector, the chamber said.
“Presently, we have a slowing economy, growing at just 5.9 per cent, a rising fiscal deficit and a host of other economic challenges. In the given scenario, the FKCCI states that to catalyse the state’s industrial and economic growth through a multi-pronged approach with emphasis on MSME and large units, support to the manufacturing sector, PPP, infrastructure development, skill development and employment generation by nurturing an industrial climate of sustenance inclusiveness, resilience and innovation,” said FKCCI President R Shivakumar.
He said, the government should kickstart various pending infrastructure projects in the state to spur growth. The FKCCI, in its detailed memorandum, has spelt out specific measures for a wide spectrum of areas.
“The state is in urgent need of infrastructure development. The immediate priority should be given to the completion of the old infrastructure projects which are facing undue delays. These range from ‘improving connectivity’ projects like Phase I and Phase II of Bangalore Metro, proper connection of Bangalore city to the Devanahalli International Airport or the Bangalore-Mumbai corridor among others, to projects in sectors such as power, gas and oil projects,” Shivakumar said.
He said, the chamber’s aim is to push Karnataka to the top among developed states. In this endeavour there is a need to accelerate the further dispersal of investments to Tier-II and Tier-III cities and create more employment opportunities in rural areas.
Karnataka has to achieve the manufacturing growth rate of 12 per cent to 13 per cent per annum and enhance the manufacturing sector’s share to 25 per cent of GDP and to attract investments of Rs 5 lakh crore, he said.
Karnataka requires the initiatives of the government on a short or long term basis like expand and improve access to basic services; ensure accountability at all levels together with proper implementation of social schemes; usher in people-friendly policy reforms, promote awareness and formulate transparent policies; promote inclusive growth by involving weaker sections of the society, revamp police laws and recruit more women in police force, encourage industry to invest in Corporate Social Responsibility (CSR); strengthen Lokayukta and establish a monitoring cell for performance review.
While, as part of the long-term measures, the apex chamber has suggested to facilitate and create favourable conditions; encourage private sector participation in rural areas; promote school education and vocational studies amid backward caste and minorities to enhance their employability; close co-operation between large, medium, small and marginal enterprises; establish a committee to review and reform existing labour laws.
