Looking forward to a recovery in the economy in the second half of the fiscal, industry body Confederation of Indian Industry (CII) on Tuesday said that in many sectors, including automobiles, production and sales have rebounded after a temporary slowdown following introduction of GST.
The chamber said that positive developments in the global economy and upcoming festival season as well as government capital expenditure will contribute to growth. “Capacity utilisation has been building up and businesses have begun to firm up their investment intentions for a period of time. The government is increasing spending on low-cost housing and infrastructure. Care must be taken that public capital expenditure including by state governments remains elevated. Reforms in the area of ease of doing business will contribute to investments, including FDI. All these factors would help build growth forces,” a statement issued by CII said.
Lowering interest rates by as much as 100 basis points could inject huge growth impulse, the statement added.
Reforms in the area of ease of doing business will contribute to investments, including FDI, the chamber said, adding that these factors would help build growth forces. CII also called on the government to look at special initiatives to promote exports, including through ways to examine certain provisions under the GST regime. In a statement, CII has suggested that payment of IGST for imports should be allowed to be debited under advance authorisation, and advance receipts for exports should be exempted from payment of Integrated GST.
The CII plea came on a day when the panel on exports led by revenue secretary Hasmukh Adhia met eight export promotion bodies to know their concerns post GST rollout.