Chambers cheer growth targets

The Chambers while feeling pleased with the Economic Survey projection of a 7-8% growth in GDP in next financial year are unhappy with the “high� fiscal and revenue deficits. The Survey, however, drew praise from CII, FICCI and Assocham on its thrust on reforms such as raising the FDI ceiling, its suggestions on labour reforms and need for a regulatory bodies for infrastructure sectors.

“The growth momentum will be maintained for three consecutive years and perhaps points to the economy having moved to a new stage of rapid and sustained growth,� said CII president Sunil Kant Munjal. He said it pointed to the sustained dynamism of the manufacturing and services sector.

But expressing concern over the continued deterioration of the fiscal balances, Mr Munjal called for an urgent correction in light of the Fiscal Responsibility and Budget Management (FRBM) targets and to raise public investment levels in infrastructure.

FICCI highlighted role of infrastructure investments and reforms. “The emphasis on investment in infrastructure, raising FDI in retail, mining and insurance sectors and setting-up of a regulatory framework for infrastructure industries should play a critical role in pushing up the GDP rate,� said FICCI president Onkar S Kanwar. He was particularly pleased about the Survey’s stress on reform of labour laws.

Assocham president Mahendra K Sanghi described as prudent and pro-growth the various reform measures listed in the Survey such as speeding up reforms in labour laws, FDI in retail, insurance and coal. He, however, regretted that the agriculture sector would grow at 1.1% in the current fiscal and sought higher allocations for this sector in the Budget.

Assocham said the announcement of a reduction in custom duty and phasing out exemptions is a step in the right direction and would lead to higher inflows of not only economic activities but also higher FDI.

K N Memani, president of North India’s apex chamber, PHDCCI asked the government to target a economic growth of 8% on a sustained basis to achieve the status of developed economy.

“We need to address issues like our continued dependence on agriculture, a drop in food grain production, a pick-up in inflation, the strong rupee, anticipated hardening of interest rates and rising fuel/energy costs which could threaten our comfortable economic environment,� he said.