Focus of PM Council to improve economy and instil optimism in industry
Updated: Jul 30, 2013 01:24:25pm
New Delhi, Jul 30 (KNN) The Prime Minister's Council on Trade and Industry met here yesterday to discuss ways to improve the economy and remove the mood of pessimism that has spread to various quarters of the industry, in view of the economic slowdown and rupee depreciation.
“The agenda focused on measures to correct the Current Account Deficit; the slowdown of industrial growth and measures to revive it; depreciation of the Rupee and its impact on trade and industry; skill development and development of industrial corridors,” said an official notification.
The Prime Minister Manmohan Singh invited suggestions from captains of the industry that can effectively address issues concerning the Indian economy.
While the government’s thoughts on the agenda were presented by both the Finance and Commerce Ministers, during the lengthy discussion that followed, certain representatives of India Inc expressed concerns while others offered concrete suggestions on ways to improve matters.
On the whole, the need to bring back optimism, converting decisions to action and taking the country back to a growth path of eight per cent or more, was echoed by all participants.
Towards correcting the Current Account Deficit, suggestions were - raising duties on consumers and luxury goods; finding innovative ways of reducing gold imports through bonds, etc; reducing conditions on FDI and speed up FIPB; having a sovereign bond and reciprocal swaplines; accelerating software exports by easing domestic movement of people, resolving tax issues, making inward visas easier and taking up the Visa Bill with USA; raising easy resources by selling SUUTI, BALCO, HZL shares; boosting agriculture exports; bringing off shore rupee market on shore; improving Coal India operations through PPP; and boosting textile exports.
Participants dwelt at length on measures to revive growth which were - focusing as much on growth as on inclusion; extending accelerated depreciation to SMEs; removing bottlenecks of pharma sector and increasing R&D; moratorium on loan repayment for delayed projects; focussing on annuity based PPP projects; restoring cash flows of firms by paying receivables; boosting domestic electronic manufacture; using PSU land for industrial parks; restarting renewable energy projects; focusing on incumbent investors for the short run; resolving tax issues and removing tax uncertainty; using government procurement to boost local Industry; and focusing on urban infrastructure.
Measures to promote industrial corridors were – to have sector specific zones and clusters; efficient single window clearances and good facilitation; giving out pre-cleared projects; accelerating the Amritsar-Delhi-Kolkata Corridor as this region is vital for growth.
As far as skill development is concerned, India Inc spoke of the need for good certification on a vast scale; focus on home service market; and using NREGA for skill development.
Within a month, a report will be submitted to the Prime Minister on what can be done in the next two to three months.
Representing the government at the meeting were the Finance Minister, the Commerce and Industries Minister, Deputy Chairman of the Planning Commission, Chairman of the National Manufacturing Competitiveness Council, Chairman of PM's Economic Advisory Council, senior officials of the government.
Members of the industry included Rahul Bajaj, Ashok Ganguly, Mukesh D. Ambani, Narayana Murthy, Azim Premji, Swati Piramal, Deepak Parekh, Jamshyd N. Godrej, Chanda Kochhar, Venu Srinivasan, Sunil Kant Munjal, S Gopalakrishnan, Rana Kapoor, Sunil B Mittal, and Naina Lal Kidwai. (KNN/ES)
“The agenda focused on measures to correct the Current Account Deficit; the slowdown of industrial growth and measures to revive it; depreciation of the Rupee and its impact on trade and industry; skill development and development of industrial corridors,” said an official notification.
The Prime Minister Manmohan Singh invited suggestions from captains of the industry that can effectively address issues concerning the Indian economy.
While the government’s thoughts on the agenda were presented by both the Finance and Commerce Ministers, during the lengthy discussion that followed, certain representatives of India Inc expressed concerns while others offered concrete suggestions on ways to improve matters.
On the whole, the need to bring back optimism, converting decisions to action and taking the country back to a growth path of eight per cent or more, was echoed by all participants.
Towards correcting the Current Account Deficit, suggestions were - raising duties on consumers and luxury goods; finding innovative ways of reducing gold imports through bonds, etc; reducing conditions on FDI and speed up FIPB; having a sovereign bond and reciprocal swaplines; accelerating software exports by easing domestic movement of people, resolving tax issues, making inward visas easier and taking up the Visa Bill with USA; raising easy resources by selling SUUTI, BALCO, HZL shares; boosting agriculture exports; bringing off shore rupee market on shore; improving Coal India operations through PPP; and boosting textile exports.
Participants dwelt at length on measures to revive growth which were - focusing as much on growth as on inclusion; extending accelerated depreciation to SMEs; removing bottlenecks of pharma sector and increasing R&D; moratorium on loan repayment for delayed projects; focussing on annuity based PPP projects; restoring cash flows of firms by paying receivables; boosting domestic electronic manufacture; using PSU land for industrial parks; restarting renewable energy projects; focusing on incumbent investors for the short run; resolving tax issues and removing tax uncertainty; using government procurement to boost local Industry; and focusing on urban infrastructure.
Measures to promote industrial corridors were – to have sector specific zones and clusters; efficient single window clearances and good facilitation; giving out pre-cleared projects; accelerating the Amritsar-Delhi-Kolkata Corridor as this region is vital for growth.
As far as skill development is concerned, India Inc spoke of the need for good certification on a vast scale; focus on home service market; and using NREGA for skill development.
Within a month, a report will be submitted to the Prime Minister on what can be done in the next two to three months.
Representing the government at the meeting were the Finance Minister, the Commerce and Industries Minister, Deputy Chairman of the Planning Commission, Chairman of the National Manufacturing Competitiveness Council, Chairman of PM's Economic Advisory Council, senior officials of the government.
Members of the industry included Rahul Bajaj, Ashok Ganguly, Mukesh D. Ambani, Narayana Murthy, Azim Premji, Swati Piramal, Deepak Parekh, Jamshyd N. Godrej, Chanda Kochhar, Venu Srinivasan, Sunil Kant Munjal, S Gopalakrishnan, Rana Kapoor, Sunil B Mittal, and Naina Lal Kidwai. (KNN/ES)
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