Buoyant over the recently announced measures by Government to boost economic growth, Industry body Assocham has stated that quick implementation of the major programmes unveiled will lift the country's GDP growth by at least 1-1.5 percent. Assocham also clarified that it will stand and work closely with the government to achieve the set targets but at the same time, as a watchdog, it will keep pointing slippages in the implementation of various schemes.
Suggesting the government to focus on key projects, Industry body Assocham recommended executing 159 public-private-partnership infrastructure projects, which have already been approved under the Viability Gap Funding involving a total investment of Rs 80,894 crore. A high level monitoring on a real time basis is required for these PPP projects out of which forty five projects have achieved financial closure as well. It also suggested that Railways must spend its Plan Outlay under of Rs 47,650 crore without allowing any slippages. The policy liberalisation of domestic investments and FDI in rail infrastructure must be implemented straight-away. Assocham also noted that huge cash piles of public sector companies must be used in capacity expansion. The investment promise of Rs 2.48 lakh crore should be fulfilled by March 31, 2015.
India's economic growth stayed below 5 percent for the second year in a row at 4.7 percent during FY14. The factors like slow reforms, high interest rates and inflation and delays in implementation of infrastructure projects in the country can be attributed for economic downturn.