India Inc calls for fiscal consolidation, economic reforms
Feb 27 2013 , New Delhi
Appreciating the assessment made by the government in the Survey that economic slowdown is a wake-up call for stepping up reforms, industry said implementation of reforms is important in order to boost investor confidence and achieve economic growth rate of over 6 per cent in 2013-14.
"The Survey's stress on fiscal consolidation through broadening the tax base and targeting wasteful and distortionary subsidies is welcome. We are optimistic that the Budget would incorporate these suggestions for kick starting the new growth cycle," CII President Adi Godrej said.
"The government should also address issues like widening fiscal deficit along with focusing more on reforms process which will help to boost investor confidence," CII Director General Chandrajit Banerjee said.
Assocham said the government needs to adopt a more serious approach towards major issues hindering the economic growth.
"Given the challenging internal and external conditions, revival of growth requires government initiative to announce a stimulus package. The growth prospects are affected due to poor show by manufacturing industry and agriculture sector," Assocham Secretary General D S Rawat said.
The pre-Budget Economic Survey tabled in Parliament today projected an optimistic 6.1 per cent to 6.7 per cent growth in the next fiscal taking into account normal monsoon, moderation in inflation rate and mild recovery in global growth.
In the current fiscal, the economy is projected to grow at 5 per cent, the lowest in a decade.
Assocham said the government's public finances are already in bad shape. Therefore, it must seriously initiate reforms process that help remove infrastructure bottlenecks, bureaucratic delays, bring clarity to government policies as well as their effective implementation.
PHD Chamber said lower interest rates could act as a catalyst to boost business sentiments inducing investment in various critical sectors of the economy, going forward.
The chambers asked the government to identify a list of doable short-term policy interventions and ensure faster implementation of big-ticket projects.