Structural reforms needed for higher growth: CII
Indian economy needs a set of structural reforms, not just to improve the performance of the economy and in particular the industry, but also to create inclusive growth, said industry body CII.
By PTI |
NEW DELHI: Indian economy needs a set of structural reforms, not just to improve the performance of the economy and in particular the industry, but also to create inclusive growth, said industry body CII.
The revised estimates of GDP and other growth figures released by the CSO on May 31 are a clear pointer to this fact as mining and power sector were a big drag on industrial growth, said CII president R Seshasayee.
Taking serious note of this slack, he shared the CII suggestions for these two sectors, where structural reforms are required. It has suggested deregulation of power and mining sector.
It is important to have a comprehensive vision for the entire energy sector, while focussing on energy efficiency, the CII president said, adding this will be important since India is taking the issue of energy security seriously.
CII has suggested creation of an Energy Commission for developing and implementing an integrated energy policy, creation of a competitive and vibrant wholesale power market and increasing the role and guidance from the centre through stronger incentives for states that expedite reform; and increase CERCs mandate over SERC.
Similarly, for mining sector it has suggested policy change like private and merchant participation in the mining sector and removal of hurdles in obtaining approvals and establish an independent regulator.
Besides CII favoured the need for accelerating formation of entities that compete with each other by allowing Coal India Ltd (CIL) subsidiaries to compete with each other and developing CIL's unexploited coal blocks in JVs with private entities.
The CII President also stressed on boosting physical infrastructure by incentivising investments in infrastructure by a mix of fiscal support, tax concessions and enhanced credit guarantee. States need to be persuaded and incentivised to find innovative modes of raising resources for basic infrastructure.
Expressing disappointment at the 9.0 per cent growth in manufacturing as against the advance estimates of 9.4 per cent growth, the CII President has said that this is an area of concern.
This concern gets further exacerbated, when seen in the context of a general slack in industrial growth, where mining has grown at only 0.9 per cent as against 5.8 per cent in the previous year.
The industry body believes that the aspired double-digit GDP growth is only possible if Industry (including manufacturing, mining and construction, electricity, gas and water supply) achieves a growth of 12 per cent and beyond.
The boost to the rural economy should help in the quest of inclusive growth that CII has been advocating, Seshasayee said.
Any such growth must translate to be an inclusive and equitable one, he said.
The revised estimates of GDP and other growth figures released by the CSO on May 31 are a clear pointer to this fact as mining and power sector were a big drag on industrial growth, said CII president R Seshasayee.
Taking serious note of this slack, he shared the CII suggestions for these two sectors, where structural reforms are required. It has suggested deregulation of power and mining sector.
It is important to have a comprehensive vision for the entire energy sector, while focussing on energy efficiency, the CII president said, adding this will be important since India is taking the issue of energy security seriously.
CII has suggested creation of an Energy Commission for developing and implementing an integrated energy policy, creation of a competitive and vibrant wholesale power market and increasing the role and guidance from the centre through stronger incentives for states that expedite reform; and increase CERCs mandate over SERC.
Similarly, for mining sector it has suggested policy change like private and merchant participation in the mining sector and removal of hurdles in obtaining approvals and establish an independent regulator.
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Besides CII favoured the need for accelerating formation of entities that compete with each other by allowing Coal India Ltd (CIL) subsidiaries to compete with each other and developing CIL's unexploited coal blocks in JVs with private entities.
The CII President also stressed on boosting physical infrastructure by incentivising investments in infrastructure by a mix of fiscal support, tax concessions and enhanced credit guarantee. States need to be persuaded and incentivised to find innovative modes of raising resources for basic infrastructure.
Expressing disappointment at the 9.0 per cent growth in manufacturing as against the advance estimates of 9.4 per cent growth, the CII President has said that this is an area of concern.
This concern gets further exacerbated, when seen in the context of a general slack in industrial growth, where mining has grown at only 0.9 per cent as against 5.8 per cent in the previous year.
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The industry body believes that the aspired double-digit GDP growth is only possible if Industry (including manufacturing, mining and construction, electricity, gas and water supply) achieves a growth of 12 per cent and beyond.
The boost to the rural economy should help in the quest of inclusive growth that CII has been advocating, Seshasayee said.
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Any such growth must translate to be an inclusive and equitable one, he said.
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