Industry pitches for reforms in first 100 days of new govt

CII’s agenda includes a demand for a reduction in the repo and reverse repo rates by at least 50 basis points, to 4.25% and 2.75%, respectively

By Shabana Hussain

New Delhi: Business lobbies Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (Ficci) have recommended a set of economic reforms for the early months of the United Progressive Alliance government.

CII’s agenda includes a demand for a reduction in the repo and reverse repo rates by at least 50 basis points, to 4.25% and 2.75%, respectively.

Disinvestment of equity in well-performing public sector units and introduction of the goods and services tax regime are among the other recommendations. “We expect the new government to move forward on reforms, now that a stable government is in place,” said Venu Srinivasan, president of CII.

In its 100-day agenda, Ficci has asked for measures that will restore economic growth to 9%, from 5.8% in the March quarter. It has asked the government to give incentive to the private sector in agriculture by treating 150% of investment by private firms in the agricultural infrastructure chain as deductible expenditure.

It has also asked for a reduction in interest rate for the manufacturing sector to 8-10%, bringing stability in the policy for special economic zones, and bringing back disinvestment into the mainstream. [From Internet]