The Telegraph
Tuesday , June 5 , 2012
Since 1st March, 1999
CIMA Gallary

Chambers weigh joint action to fight slide

New Delhi, June 4: Industry associations are trying to put up a united front to lobby the government into agreeing with their prescriptions to revive growth.

The Federation of Indian Chambers of Commerce and Industry (Ficci) has written to the Confederation of Indian Industry (CII) urging them to jointly fight the present economic situation and hold common talks with the Centre.

“I have personally written to Adi Godrej (CII president) urging him to work together. Today when the country is going through a crisis, there is a need to unite. We hope to work with them in the near future,” Ficci president R.V. Kanoria said.

He said the CII was yet to give an official reply to the letter sent last week. “Also there has to be a clear recognition on the part of the ruling and Opposition parties that we are in a crisis situation and all parties need to stand united and strengthen the hands of policy makers to take bold decisions and act proactively and decisively,” he said.

Ficci has come out with a 12-point agenda, which urges the government to take bold steps such as allowing FDI in multibrand retail and foreign airlines to invest in domestic aviation firms besides relaxing the FDI cap in the sector, cut interest rates and halt funding of welfare activities.

“Civil aviation has seen the worst in the last few years. FDI in this sector can give a new lease of life to the industry. The government should also consider increasing the percentage of foreign investment in the sector,” Kanoria said.

Ficci has suggested that the timely implementation of the goods and services tax will play a crucial role in altering the dynamics of industry and exports. “It will add 1 per cent to our GDP. Tax administration and tax collection will also go up,” secretary-general Rajiv Kumar said.

A CII-Ascon survey has forecast a sharp deceleration in industrial growth in the first quarter of the current fiscal.

The survey highlighted low investment rates, the depreciating rupee and high inflation as the sore points.