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Govt needs to speed up implementation of GST and other investment issues: CII survey

06 Jun 2016 Evaluate

Industry body, Confederation of Indian Industry (CII), which has recently said that if the predictions of above-normal monsoon turn out to be true, India's Gross Domestic Product (GDP) growth could easily cross the 8 per cent-mark in FY17, in its latest survey has cautioned that government needs to speed up implementation of GST, address the issue of cheap imports and improve investment climate as majority of sectors are witnessing ‘moderate’ growth.

The industry body in its survey findings stated that overall, the current trends reveal that majority of the sectors are continuing to witness “moderate” growth rates (0 to 10 per cent) with “excellent” (above 20 per cent) and “high” (10-20 per cent) growth limited only to few sectors, there has been a sharp decline in the share of sectors registering “low” growth (below 0 per cent). Out of the 102 sectors surveyed including crude oil, cement and natural gas, the share of sectors registering 'excellent' growth remained constant during the fourth quarter of 2015-16. The survey which tracks the growth of economic sectors on a quarterly basis, also stressed on the quick implementation of the announcements in the budget especially in the infrastructure space, boosting export competitiveness and addressing the issue of delayed payments.

Though, it also said that a decline in the share of sectors registering ‘low’ growth is clearly an indication towards the bottoming out of growth trends in the majority of sectors and going forward, on the back of the various measures and structural reforms taken by the government, it is expected that the current momentum would be supportive of the revival becoming broad based in the coming quarters.

The survey also said that to support the 'Make in India' initiative, there is a need to strengthen anti-dumping laws to protect local manufacturing and provide subsidies on production of major raw materials of key export products to make them cost competitive. The Survey respondents have emphasized that coupled with sustaining the reforms agenda, particularly ensuring quicker progress on reforms such as the GST Bill and Land Acquisition, Rehabilitation and Resettlement Amendment Bill, 2015, will impart greater certainty to investors on the policy front.

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