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Journalism of Courage
NEW DELHI, FEB 21: The industry has asked the BJP-led Government to come OUT with a clear policy statement in the 1999-2000 budget to pursue economic reforms aggressively, reversing the slowdown in economic, industrial and export sectors which is endangering the country’s GDP growth.
Expressing serious concern over the let up in Government’s economic policy which has dampened the investment climate, industry said the budget should be growth-oriented, restore investors’ confidence in the economy and bring the "feel good" factor once again for trade and industry.
Presidents of leading chambers of commerce and industry including CII, Ficci, Assocham and Phdcci told that the Government should pursue a long-term stable fiscal management policy that lowers deficit, reduces Centre borrowings and brings down interest rates.
"All long-pending economic-reform legislations to usher in a liberalised foreign-exchange regime, opening up the insurance sector to private participation, aligning patents regime tointernational standards and updating the companies act to suit the new industrial environment must be pushed through in the budget session," Confederation of Indian Industry (CII) president Rajesh Shah said.
"Government should make a clear policy statement detailing measures to speed up economic reforms in the next five to six years so that industry can make its commitments on investments," Shah said. "The Centre must get the Fema bill to replace Fera passed in the budget session as also get parliamentary approval for the Insurance Regulatory Authority, patents and companies amendment bills to send out a strong and positive signal to the world that India intends to pursue reforms," Shah said.
Ficci president Sudhir Jalan said industry was looking forward to a significant thrust in the 1999-2000 budget to demand stimulation through rationalisation of excise-duty structure, specially consumer durables. "The increase in demand will more than meet the notional revenue loss," he said.He said the industry waslooking for incentives for enhancing export growth, steps for revival of capital market and opening up of insurance to foreign and private local companies. Along with this, industry expects streamlining of Government expenditure and a clear-cut policy for controlling fiscal deficit which is essential for containing inflation and also maintaining exchange rate.
