India Inc wants next Govt. to take bold decisions
Just as the political parties are slogging it out in electioneering, India Inc's top leadership and economists today held a brain-storming session at Assocham to conclude that India will need a decisive government at the Centre with a sharp focus and capable of pulling the economy out of the slow motion to a faster lane by taking bold decisions.
Interactive Session on expectations from the new government, Assocham
President Rana Kapoor described the Indian economy as a “super like
a super star cricketer who is injured and he cannot play in the
finals. We are waiting and pausing for revival. We have not seen
structural reforms for the past two/three years”. He said, while
is suffering from demand slowdown there is a potential
demand in India.
Government that comes to power in May 2014 will have to prioritise
its action plan for the next five years to ensure that India
10% growth in a sustainable manner, said Kapoor.
deserves not 8-9% but 10% growth. The new Government in its first
budget has the unique opportunity to demonstrate a sense of urgency
in its resolve to fast track several important bills which will help
revive investor sentiment for overall economic revival", added
He said India
had the best opportunity. While
India is a long-term sustainable market, there is a need to rebuild
confidence. As for his expectations from the new government, Kapoor
said “we must push for bold decisions …get instant tax reforms,
Senior Representative (India and Nepal) of the International Monetary
Fund, Dr Thomas Richardson said, “We are pretty bullish about India
story which is solid and intact. (But) Turning growth will require
addressing structural bottlenecks”.
macro picture ahead of the elections he said inflation remains one of
the key macroeconomic challenges. Budget deficit is not out of
control but on the high side. On subsidies he stressed the need for
targeting and reform since the rich people get advantage of the
subsidies like fuel while the poor do not get it. “It is
regressive”, he said.
the macro picture looks much better today than last year when India
faced volatility on account of high Current Account Deficit and India
will continue to be a destination for investors.
CEO of ICRIER Rajat Kathuria said, India suffers from poor quality
physical infrastructure and delays in project clearances. The issue
of physical infrastructure and institutional capacity is much more
critical at the state level…desperately needed to improve to bounce
back to 7-8 per cent growth.