FICCI calls for retrieving black money from abroad to revitalize economy

The industry body, Federation of Indian Chambers of Commerce and Industry (FICCI) is advocating the idea of fast tracking the process of getting back the hoards of black money that are lying in Swiss banks which would help Asia’s third largest economy in addressing economic challenges and bring it back on track. The FICCI President opined that the issue of repatriation of black money from abroad without asking the countries to disclose the identity of the depositor could bring the economy out of doldrums.

FICCI had citied a series of reasons like monetary tightening, delays and uncertainty over key economic legislations, project delays on account of factors including stalled environmental clearances, problems in land acquisition, prolonged pause in reforms and an atmosphere of unwillingness in decision making in bureaucracy, for the country's economic challenges. The industry body early in June had submitted a twelve point agenda for reviving India’s flagging economic growth to the then Union Finance Minister Pranab Mukherjee, who is now considered by many as the frontrunner in the race of becoming President of India.

FICCI President RV Kanoria also cited examples of nations like Germany, which have signed agreements with the government of Switzerland to retrieve their money. Despite country's economy growing at a steady pace since 1991, the economic situation in India is similar to the way it was in the years before 1991, the year in which India took a decisive turn towards market - friendly policies and opened its market for the foreign investors for the first time as a consequence of the huge economic crisis post-independence. Apart from regretting the fact that the economy which has the potential to grow in double-digits is currently in dismay, the body also underscored that India’s fiscal deficit is widening and the current borrowings have risen to 20% of GDP from 10% earlier.

The industry body also considered poor performance of the union government as one of the many reasons for the overall negative sentiment prevailing in India and urged the Centre to work towards reviving sentiment. FICCI, however, commended the performance of independent states which are outperforming other states. Voicing its support for the Goods and Service Tax (GST), FICCI highlighted that its implementation is likely to double up per-capita income.