Budget 2014: Replicate Gujarat's ease of doing business, says Harsh Goenka of RPG Enterprises

NEW DELHI: Hoping that Prime Minister Narendra Modi would be able to replicate Gujarat's ease of doing business at a pan-India level, Harsh Goenka, Chairman of RPG Enterprises told ET, "The success of the Gujarat model hinged on the turnaround of state PSUs like GNFC, GSFC and GACL. Modi brought in good managers and bureaucrats and allowed them a free hand. I hope he can do the same with Central PSUs, getting them CEOs based on merit."

"I hope he can also bring about the same ease of doing business that was there in Gujarat - like putting all the clearance processes on the internet. The key will be how to reduce the number of permissions," Goenka said.

"Also look out for tax simplification and doing away with retrospective taxation. I also hope the NREGA can be tweaked though it cannot be done away with. I also hope he can provide a boost to tourism like he did in Gujarat which was nowhere in tourism when he took over," Goenka said.

Commenting on his expectations from the budget, Goenka said, "This government is definitely pro-industry. The core team comprises Arun Jaitley who can surely get the best advisers to aid him. Nitin Gadkari has a track record of developing infrastructure in Maharashtra."

Asked about allowing FDI, Goenka said, "FDI norms will surely be eased, but I do not think retail FDI will happen. FII money is already coming in a big way."

Goenka feels, "The trick will be to provide incentives to manufacturing. China is losing competitiveness as a manufacturing base - it still offers better productivity and regimentation but cost wise it is not cheap anymore. This is an opening for India."

Finance Minister Arun Jaitley will present his maiden budget on July 10.