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  3. Indian economy can grow at 9-10 percent in the medium-term: CII

Indian economy can grow at 9-10 percent in the medium-term: CII

28 May 2015 Evaluate

Confederation of Indian Industry (CII) has said that India's economy can grow at 9-10 percent in the medium-term with a multi-pronged economic strategy. Welcoming the many path-breaking economic reform measures announced by the government during the past year, CII has said that the government has created strong foundation for building a developed India.

CII in its release has said that government’s achievements during the year can broadly be categorized into four areas, namely corruption-free governance, economic diplomacy, empowerment of states and putting in place key policies to revive investment in the economy. With transformational changes being envisioned not only on the economic front but on the social, technology and foreign policy fronts as well, the first anniversary of the Modi government has been marked by fresh thinking on all major areas of governance.

The industry body has however outlined ten areas requiring policy attention that can bring huge economic benefits for growth, investment and employment creation. The areas highlighted by the industry body for more attention include macro-economy, mining, manufacturing, land acquisition, energy, labour reforms, skill development, taxation, financial sector and Companies Act.

On the macro-economy front CII said that the government has done a remarkable job of fiscal discipline and hopes that it would stay the course. “Setting a ceiling on subsidy expenditure would be an important step in that direction”. It added that all subsidy disbursal may be converted into direct benefit transfer (DBT) by linking Jan Dhan Yojana, Aadhar and mobile technology or the JAM trinity, including for foodgrains, LPG and kerosene, within two years, while PSU disinvestment must be rolled out through the year while restructuring and privatization of loss-making PSUs should be auctioned.

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