The Confederation of Indian Industry on Tuesday announced a 10-point agenda for economic revival and outlined key areas of concern.
After concluding the national council meeting here, CII said the Indian industry is concerned about the current state of the economy and urged the Government to take immediate steps to revive growth through an economic revival package.
The CII felt rupee depreciation and low growth numbers – the latter considered to be the worst in the recent quarter over the last nine years – continue to be major concerns.
Mr Adi B. Godrej, President of CII, said the economy needs immediate measures including a stimulus to revive growth while identifying the implementation of GST as one of the measures.
The implementation of GST could add up to 1.5 per cent to the overall GDP.
He said the perception of the investing community and global investors would get better once some monetary stimulus is provided by the Reserve Bank of India. There is need for further cut in repo rates and cash reserve ratio (CRR).
On the subsidy burden draining the finances, the CII suggested restricting subsidies to two per cent of GDP. The subsidies have a major impact on the economy as it leads to huge fiscal deficit.
It favoured accelerating the reform process as it has a cascading impact on the economy, resulting in positive sentiment. CII favoured approving FDI in the aviation sector, insurance and multi-brand retail to ensure more inflows.
According to Mr S.Gopalakrishnana, President Designate, CII, The CII Ascon survey for the period April-June 2012 paints a grim picture of the economy. The survey covered 35,000 companies in 114 sectors.