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Industry unveils a wish list for the new government
Industry body FICCI has said that the nation has very clearly voted for development. FICCI congratulated PM-Elect Narendra Modi for the overwhelming mandate received from the largest elections ever held. In a statement the industry body said that Modi has charted a dynamic vision with determination to lead from the front.
"We look forward to renewed trust, sound governance and decisive actions as enabling factors to address needs and aspirations of both our entrepreneurs and youth" said Sidharth Birla, President, FICCI.

"Even as the Union Budget is a ripe opportunity to spell out key policies, fiscal imperatives and plans for implementation, the interim weeks must be liberally used by our Leadership to project its vision and set a progressive tone and direction. We also hope to see measures on inflation mitigation and restoring confidence, besides road maps on job creation and national competitiveness".

"Mission-mode actions and bold decisions are most likely to deliver tangible outcomes over 6-24 months", added Birla.

FICCI has made certain suggestions via our agenda for Enabling India. FICCI assured the Government of its untiring efforts and participation in developing positive policies leading to job creation and growth across regions and sectors - particularly manufacturing.

"Enabling India" : FICCI's agenda for the new government

The Imperatives:

  • Broad-based regular communication from PM's level

  • Cabinet-led decision making with full authority and accountability

  • Roadmap to 8% growth by 2017 and 10%+ by 2020

  • Creation of a Food Inflation Response & Strategy Team (FIRST) under PMO

  • Outline National Agenda for Job Creation

  • Strong Centre-State linkages, greater decentralization for development

The Important

  1. Mitigate Food Inflation

  • De-list horticulture products from APMC Act

  • Higher Production/Productivity measures

  • Focus on post-harvest distribution infrastructure

  • Enhance Milk production ('White Revolution')

  • Enhance Fruit & Vegetables production ('Rainbow Revolution'); use of arid land

    2. Revenue / Expenditure Management

  • GST in 2015

  • Revisit Subsidies and Revamp MNREGA (for asset creation)

  • Review DTC ? inter-alia need for conducive environment for taxpayers

  • Address Tax Environment

  • End Tax Adventurism

  • Resolve Retrospective/Capital Raising related tax issues

  • Retrospective actions, if at all, must invariably favour the taxpayer

  • Rebated Income Tax for small, start-up businesses linked to employment creation

    3. Strengthen Legal & Judicial Infrastructure
    4. Sustainable Balance of Payments

    ? Resolve Coal/Iron Ore impasse
    ? Market based fuel pricing/tackle subsidies to curtail oil import impacts
    ? Moderate import dependence for natural resources and commodities
    ? Inspire FDI for exports, mitigate defence imports

    5. Reform Factors of Production
    ? Labour ? Flexibility in labour laws
    ? Energy ? Private sector participation in coal sector; resolve gas pricing
    ? A Land ? Comprehensive review of Land Acquisition Act
    ? Capital ? Deepen equity markets, re-capitalise and consolidate public sector banks (bring down government equity)

    The National Council of industry body CII also met yesterday, where more than 70 top industry leaders of the country participated. Post the meeting, Ajay Shriram, President, CII said ?CII and industry are in a buoyant mood post the election results. Industry was looking for a stable government, which would be in a position to make swift and bold decisions and that expectation has been met by the verdict in the Lok Sabha elections. With absolute majority, the incoming government would have the time and ability at their disposal to ensure that the more complex problems of the country are addressed.?

Commenting on the agenda for the new government that CII has prepared, Shriram said ?CII is looking forward to working very closely with the government on a wide array of issues. While the primary aim would be to revive the economy, CII does not believe that this government should be given something like a very short period agenda. In fact, we are keen that a vision for economic development along with targets for growth be set for the next three to five years at least. GDP growth could be targeted to rise to 6.5 percent initially, going up to 8.5 percent by 2016-17. The economy is beset with complex problems and trying to find short term solutions to long term issue would be counterproductive. The new government might have to take hard decisions, some of which might not be very palatable to industry in the short term. However, as long as these are aimed at curing the economy of its present ailments, CII would be firmly with the government on these issues. A huge thrust has to be on implementation since that yields results most visibly. Then there are irritants like the land acquisition act and the new companies act, which need comprehensive overhaul to make them practical in the context of realities today.?

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