CII backs land ordinance; says land acquisition biggest challenge for reviving economy

NEW DELHI: Industry body CII has said that land acquisition remains the biggest challenge for reviving the Indian economy and backed the ordinance route adopted by the Modi government to reform the law, adding that it is trying to sensitise law makers and state governments on the need for changing the law.

Citing its vigorous opposition to the previous land acquisition law brought in by the Manmohan Singh government in 2013, CII top brass said on Wednesday that they had warned the UPA that the changes it was making to the 1894 Land Act won’t take the country forward. It also highlighted that the changes moved by the NDA government are not ‘ anti-farmer’.

“The ordinance to amend the land law was a step that had to be taken, whether Rajya Sabha passes it or not, we will see…We have to think about the India we want 20 years from today,” said Tractors India Limited chairman and managing director Sumit Mazumder, who took over as the CII president on April 7.

The chamber stressed that taking the ordinance route cannot derail the overall reform agenda, with CII president designate Naushad Forbes stressing that ordinances are a demonstration of intent.

Forbes said he expected the investment cycle to revive by the end of 2015-16, with domestic firms leading the way. “Domestic investments would pick up first, with foreign investors following suit once they see fresh capex from local firms,” he said. While the CII expects the economy to grow in the range of 7.8% to 8.2% this fiscal, albeit on the basis of the controversial new GDP data series, it believes that even a double digit growth rate can be attained if the government follows through on its stated intentions.