ENARADA, Bangalore, July 5, 2013:
“In order to revive growth, it is essential to kick-start both investment and consumption demand. The Reserve Bank of India needs to work in tandem with the Government in boosting growth by easing interest rates by at least 100 bps in the current fiscal,” said Mr Kris Gopalakrishnan, President, CII & Co-Founder and Executive Vice Chairman, Infosys Limited while addressing a press conference in Bangalore,yesterday.
CII has chosen theme – ‘Accelerating Economic Growth through Innovation, Transformation, Inclusion and Governance’ for the current year, said Mr Gopalakrishnan. This is in line with the national priority of generating revenues for social programmes for inclusive growth.
Emphasising on the need to accelerate economic growth, the CII President suggested aiming for a growth rate of 8-9% in the next two years through kick starting investment and consumption demand. Reviving stalled projects is a critical precursor for facilitating higher overall investment. He therefore stressed on the need for the Cabinet Committee on Investment (CCI) to aim for making a repository of the top 50 stalled projects in terms of the investment incurred and go for their revival on a priority basis. Also, streamlining procedural reforms is another major step for India to catapult itself to the high growth trajectory.
Mr.Gopalakrishnan presented CII’s 10 point agenda for Economic Revival. The recommendations include, a suggestion to reduce Repo rate by 75 bps and CRR by 100 bps thereby increasing availability and reduction in cost of capital, fast-tracking of 50 mega projects of more than Rs. 1000 crore and 200 large projects between Rs. 250 to 1000 crores within the next six months with a view to bringing in much need investments in the Infrastructure and manufacturing sectors. Implementation of GST, Fiscal Consolidation that includes fast tracking of public sector disinvestment, monetising unutilized and underutilized resources owned by PSU’s and a cutting of fertiliser subsidies and recommendations to manage the Current account deficit, managing currency volatility, mobilising financial savings and strengthening of the power sector were some more recommendations.
