India Inc happy with new laws in 2013, expects further reforms

Dec 30 2013, 11:44 IST
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A recent World Bank study ranks India at 134th position among 189 countries in terms of ease of doing business. A recent World Bank study ranks India at 134th position among 189 countries in terms of ease of doing business.
SummaryCorporates expect much awaited bills on GST, DTC and insurance to pass the muster soon.

the first half of the year, is rather small, he added.

"The main problem in 2013 has been the inability of the government, in the wake of several factors such as adverse court rulings, perceptions of scams and lack of political consensus to take decisions which could have pulled the industry and the economy out of the slackness," Kapoor said.

"In the process, decision making became a major casualty as honest officers were not willing to stick their neck out," he added.

Increased cost of capital, high inflation, adverse global scenario and indecision at home kept plaguing the industry even as even as big-ticket investments continued to shy away.

As we enter 2014, the key challenge in front of policymakers is to revive the domestic investment cycle. Though CCI has cleared several large projects, it is equally important to ensure implementation of these on the ground. Further, clarity in policy formulation and greater certainty in rules and regulations is critical.

"It is imperative to remove procedural hassles and to tap the unexplored potential for offering tremendous avenues for investors for sustainable and environment-friendly economic growth.

Besides, the manufacturing sector growth remains volatile and reviving the same is an absolute imperative as the sector has a huge potential of generating jobs.

"In the year of general elections, the corporate sector maintains a cautious approach as policy machinery inherently tends to slow down. We did see some bold policy moves over the last few months, but some major reform measures like GST have not seen progress," Birla said.

Going ahead, new programmes and strategies should be planned to bridge the yawning skill gap and a more liberal attitude is required to facilitate entry of private and foreign players in the education sector to impart quality education and link it with employment.

However, the real game changer could be the improvement in the quality of governance post General Elections, something that is being keenly anticipated by India Inc, and which separates success from failure in economic development.

"Good governance is at the very heart of economic growth and poverty reduction, and even political legitimacy is one of the undisputed lessons of development experience from around the world. In our own country, we have seen vast differences across states in development outcomes from out of the same mix of development policies," PHD Chamber of Commerce President Sharad Jaipuria said.

With hopes riding high on the outcome of the upcoming General Elections and their positive impact

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