Industry body Confederation of Indian Industry (CII) said on Monday that the several reform measures, including those for the MSME sector, have led to rebound in the Indian economy.

Notable initiatives have been taken to strengthen micro, small and medium enterprises (MSME), said a press release by CII.

Measures such as lowering corporate income tax rates to 25% for 99% of enterprises, redefinition of MSME, addressing delayed payments, and differential treatment for MSME non-performing assets have been announced, it added.

The MUDRA scheme has helped millions of small entrepreneurs obtain loans and generated millions of jobs, the industry body viewed.

There are now strong indications that the economy is set on a recovery path. "The impact of sustained structural reforms is now being felt on the ground as a mammoth economy is turning around," said Rakesh Bharti Mittal, President, Confederation of Indian Industry (CII). "Businesses across several key sectors are experiencing firm growth in sales and orders, indicating better capacity utilization and higher investment expectations," he added.

According to CII, strong rural consumption is reflected in sectors such as consumer non-durables, two-wheelers and tractors. Prudent macroeconomic management has encouraged growth and investments for capacity expansion are being planned as demand conditions recover.

The Government has avoided slippage in the fiscal deficit despite the rise in oil prices. Inflation too has remained under control to the extent possible even as cost of oil is going up.  

The capital goods sector is showing steady improvement and order books are filling up. Exports, too, are poised to grow at a faster pace in the current fiscal year, which started on a good note, noted CII.

"The feedback from businesses is that the rebound in the economy is now firmly entrenched and the positive impact of the actions taken by the government, including major structural reforms, are being felt on the ground," added Mittal.