SME Times News Bureau | 18 Apr, 2014
Indian industry's top leadership and economists Thursday
held a brain-storming session at ASSOCHAM to conclude that India will need a
decisive government at the Centre with a sharp focus and capable of pulling the
economy out of the slow motion to a faster lane by taking bold decisions.
At an Interactive Session on expectations from
the new government, ASSOCHAM President Rana Kapoor described the Indian economy
as a "super like a super star cricketer who is injured and he cannot play in
the finals. We are waiting and pausing for revival. We have not seen structural
reforms for the past two/three years". He said, while the world is suffering
from demand slowdown there is a potential demand in
India.
The new Government that comes to power in May 2014 will have to prioritise its
action plan for the next five years to ensure that India achieves 10% growth in
a sustainable manner, said Kapoor.
"India deserves not 8-9% but 10% growth. The new Government in its first
budget has the unique opportunity to demonstrate a sense of urgency in its
resolve to fast track several important bills which will help revive investor
sentiment for overall economic revival", added the ASSOCHAM Chief.
He said India had the best opportunity. While India is a long-term sustainable
market, there is a need to rebuild confidence. As for his expectations from the
new government, Mr Kapoor said, "We must push for bold decisions …get instant
tax reforms, business regulations."
However, Senior Representative (India and Nepal) of the International Monetary
Fund, Thomas Richardson said, "We are pretty bullish about
India story which is solid and intact. (But) Turning growth will require
addressing structural bottlenecks".
On the macro picture ahead of the elections he said inflation remains one of
the key macroeconomic challenges. Budget deficit is not out of control but on
the high side. On subsidies he stressed the need for targeting and reform
since the rich people get advantage of the subsidies like fuel while the poor
do not get it. "It is regressive", he said.
He said the macro picture looks much better today than last year when India
faced volatility on account of high Current Account Deficit and India will
continue to be a destination for investors.
Director and CEO of ICRIER Rajat Kathuria said, India suffers from poor
quality physical infrastructure and delays in project clearances. The
issue of physical infrastructure and institutional capacity is much more
critical at the state level…desperately needed to improve to bounce back to 7-8
percent growth.
