Lopsided growth a concern: CII

In its pre-budget note to the government, the Confederation of Indian Industry (CII) has predicted a 6.6 to 7 per cent gross domestic product (GDP) growth for 2004-05, but has raised its concern over uneven growth across sectors and low contribution of industry towards GDP. ‘‘India cannot support 7.5 per cent GDP growth without 4.5 per cent growth in agriculture, 7.5 – 8 per cent growth in industry and 8.5 – 9 per cent growth in services,’’ CII said.

While advancing a case to double GDP growth by 2014, CII said corporatisation of railways and ports, liberalisation of aviation, a cess to generate railway development funds and a cap of 15-20 per cent on tourism, apart from incentives for states that undertake agricultural reforms, would support growth at 7.5 to 8 per cent. But for maintaining the growth projections, the industry would require large and sustained growth in infrastructure, investments and efficiency, CII said.

It has recommended an independent regulatory authority for ports, a 5 per cent cess on passenger rail fares and an independent Railways Tariff Regulatory Authority. It has also asked for liberalisation of air transport services, rationalisation of aviation fuel prices and power reforms based on the N.K. Singh Committee report.