CII president Sunil Kant Munjal in Calcutta on Friday. A Telegraph picture

Calcutta, Aug. 6: The government needs to continue with the divestment programme to raise resources for essential investments in the economy, CII president Sunil Kant Munjal said here today.

“Since the government’s funds are limited, the divestment exercise should be carried forward to facilitate investments in infrastructure,” Munjal said. He was in the city to address the India-China business conclave organised by the Confederation of Indian Industry.

When members pointed out that the Centre had virtually stalled the divestment exercise, Munjal said the exercise had not stopped altogether.

The government has said that the divestment process would be reviewed and would be done on a case-by-case basis, he added.

The industry body had supported the divestment effort of the BJP-led government.

CII today signed a memorandum of understanding with the China Council for Promotion of International Trade and the Yunnan sub-council to strengthen economic and trade ties with that country.

Calling for a sustained GDP growth rate of 8 per cent, Munjal said the CII had charted out several areas that deserve special attention. These areas are rural economy, infrastructure, small and medium enterprises and the manufacturing sector.

CII wants the government to facilitate greater market access for Indian products around the world through effective bilateral interaction, a focus on removal of non-tariff barriers and market access promotional measures.

Munjal said CII’s theme for 2004-05 is ‘Competitiveness of India Inc — Building for Growth’. The industry body plans to set up a taskforce on the rural economy, while the CII Agricultural Council will look at issues of developing markets, providing finance and encouraging private investment in agriculture.