Interest rate reduction will boost investment cycle: Ficci president

Hotelier Jyotsna Suri takes charge of industry chamber Ficci at a time when the Narendra Modi government takes baby steps into resurrecting the Indian economy and working out a growth agenda. Suri, who took over as Ficci president last week, feels that it is "too early" to judge the performance of the government and make an assessment of its agenda. However, in the run-up to the first full Budget of the Modi government, she speaks about the industry wish-list of rationalizing subsidies and taking steps for making it easier to do business in India:

There are concerns over performance of the Modi government so far and whether it has been unable to turn around the economy fast?

Impatience is not a virtue. We have to remember that six-month period is too short a time to judge anyone. The new government deserves at least 18-24 months before we make any comment on its performance. They have achieved to create a good sentiment and PM Modi has been able to generate interest in India across the world. He has built a 'Brand India'. This is the first step and now we need to give them time.

What are positives that you take home from the government's performance so far?

There clearly is a vision. The PM has an agenda of development, which envisages crucial elements like 'Make in India' and 'Digital India'. We need to be patient for all this to fructify.

What is your view on the government's efforts to push goods and services tax (GST) reform?

A lot of effort has gone into it and its implementation is imperative. This reform can change the economy of India. The absence of GST makes India very uncompetitive when compared to competing nations like China. However, it is an extremely difficult reform to implement as each state has its own issue.

The government as well as India Inc. has been seeking a cut in interest rates, but RBI is yet to take a call on this. How crucial is this?

It will benefit and boost the investment cycle. This is the right time to cut the interest rate as we are sitting on zero inflation. The RBI governor should certainly look into it. The whole industry is waiting for it

Has the government done enough on issues like predictability of taxes and green clearances to projects?

This is all a part of ease of doing business. Issues like retrospective taxes worry us. The government is working on it, though nothing has happened on this as yet. But, there has been a movement. People have to stop being negative and judgemental... We need to put aside agendas, including political, and forget individual ideologies

The Budget is around the corner. What is your wishlist?

We want the government to rationalize subsidies as there is too much outflow over there. Also, there is a need to rationalize taxes which comes in the agenda of GST. The government should also control its borrowings, while also making it easier to do business in the country. The medium and small enterprises also need attention as they create employment and help boost GDP.