New Delhi: Working with the government this fiscal year, business lobby Confederation of Indian Industry, or CII, plans to focus on stabilizing the economy, improving infrastructure and the quality of governance, the body’s new president said on Tuesday.
At a press briefing Venu Srinivasan, also chairman and managing director, TVS Motor Co. Ltd, pointed to a host of measures the union government needs to take in order to get economic growth back on track.
“I must hasten to add that we face the world with cautious optimism,” he said, referring to statistics showing unlike in the developed world growth in India has not fallen steeply. The Indian economy is expected to grow 7.1% in fiscal 2009.
The cost and availability of credit is still an issue, according to Srinivasan.
CII recommends that the repo and reverse repo rates – the rates at which the Reserve Bank of India borrows and lends cash to banks - be cut by 50 basis points. A basis point is one hundredth of a percentage point.
Other measures aimed at kick starting growth include implementing a unified general sales tax, investing in rural agricultural markets and making land acquisition for industrial clusters easier.
Srinivasan pointed to infrastructure as a key enabler of economic growth.
“The lack of competitive infrastructure is telling on our costs,” he said.
He suggested pushing through large infrastructure projects such as the two proposed rail freight corridors to stimulate growth.