Measures undertaken by new govt will revive growth: India Inc

By: | Published: November 23, 2014 7:44 PM

Assessing the performance of the new government at the Centre in the first six months...

Assessing the performance of the new government at the Centre in the first six months, India Inc said the new dispensation has initiated fundamental reforms that have set stage for revival of economic growth.

“Measures taken to improve ease of doing business and attract investments in manufacturing and infrastructure will facilitate revival of capex cycle, accelerate economic activity, create large scale employment and thus drive overall growth,” Ficci President Sidharth said.

“The real impact of these reform measures on the economy should be visible in the next 12-18 months,” he added.

PHD Chamber President Sharad Jaipuria said: “The government has actively taken up the agenda of rejuvenation of India’s growth story by focussing on refuelling growth, taming price pressures, facilitating industrial and business environment and simplifying the policies and procedures”.

“The PM’s vision to reduce administrative bottlenecks and at the same time provide conducive environment to the businesses and households speaks loud and clear about the performance it (government) has displayed in the last 6 months”.

However, going forward, early roll out of reforms like the GST (Goods & Services Tax); changes in the Land Acquisition Act; passage of the insurance bill; boosting infrastructure; and augmenting the manufacturing base will be instrumental in refuelling growth, according to the industry.

“The decisions to hike railway fares, raise FDI limits in defence, real estate and insurance and attract FDI in railways, reform fuel price regime, etc have all helped to contribute to a renewed confidence”, CII director general Chandrajit banerjee said.

Moreover, expediting disinvestment to shore up revenues was the key to rein in the fiscal deficit within the budget target of 4.1 per cent, along with rationalising subsidies as per the recommendations of the Expenditure Management Commission, India Inc said.

“In order to ensure that the 4.1 per cent target is achieved, the Government must embark immediately on its PSU disinvestment program to shore up revenues, while keeping a lid on expenditures,” Assocham President Rana Kapoor said.

The Commission is expected to submit its interim report before Budget 2015-16 and the final report before Budget 2016-17.

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