India economy must top Modi’s agenda: Industry

India economy must top Modi’s agenda: Industry

The economic priorities and policy direction need to be articulated promptly and effectively to send positive signals.



By (IANS)

Published: Sun 18 May 2014, 10:24 PM

Last updated: Sat 4 Apr 2015, 3:15 AM

With growth at its lowest in over a decade and inflation, job creation and investments remaining major challenges, India’s new government under Narendra Modi has its task cut out to reverse months of perceived policy inaction and revive the stagnant economy.

Opinion-makers and stakeholders IANS spoke to were unanimous on the immediate action: Revive investments in manufacturing and infrastructure, address supply bottlenecks, rein in rising prices, streamline policy-making and reinstate investor confidence.

“Besides cyclical factors, our economy has been impacted by weak administrative decision making, heightened activism and regulatory and judicial actions. The new government will have to take a balanced view of the issues, “ said Ficci president Sidharth Birla.

“Building confidence and trust amongst businesses and society is critical. The economic priorities and policy direction need to be articulated promptly and effectively to send positive signals,” Birla told IANS.

He said economic slowdown over the past two years has been a major cause of concern and the new government must take concrete steps to return to a high growth trajectory of eight-per cent plus. “Tax adventurism must end. The tax regime must be made simpler and hassle free.”

India’s gross domestic product (GDP) growth fell to 4.5 per cent in 2012-13, the worst performance since 2002-03, and is estimated to grow at no more than 4.9 per cent in the year ended March 31, 2014, according to the Central Statistics Office (CSO).

JK Tyre and Industries chairman R.P. Singhania expressed similar view: “If India needs to achieve the next level of growth, it will need to build infrastructure capabilities with a very strong focus on manufacturing.”

Manufacturing also needs impetus, so vital to ensure new jobs, especially for the youth. “As a country, we need to create 10-12 million jobs every year to support our youth who would be coming into mainstream every year,” Singhania said.


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