CII envisions new task force to spur GDP growth

NEW DELHI, INDIA: India's premier industry body, CII (Confederation of Indian Industry) is setting up a task force to accelerate industry growth in the country. The body is also initiating dialogue with the government and industry leaders, and is expected to create the task force by June.

In its recommendations to the government, CII bats for higher GDP growth. It said that 8-9 per cent growth could be achieved over the next two years. This, it said, was viable, since Cabinet Committee on Investments had recently cleared Rs. 40,000 crore worth projects that could also help provide decent jobs.

CII president and Infosys co-founder, Kris S. Gopalakrishnan, felt that there was a need to look at current account deficit, as oil and gold prices would continue to rise. "There have been challenges that need to be addressed. These include improvement in business climate, reduction in interest rates, necessary clearances and the cost of doing business in India," he said.

There was a role for the government, industry and civil society to play, Gopalakrishnan added. "We should work in cooperation rather than confrontation."

Government, he said, was projecting 8-9 per cent economic growth in three years, but CII is demanding that it should be accelerated, so that desirable growth could be achieved in two years.

GST roll-out, Gopalakrishnan reckoned, would further fuel GDP growth almost by 1.5 per cent. CII believes that it is primarily its demand that compelled India to create domestic manufacturing ecosystem, and that such is the case with electronics that would be US $ 400 billion industry in the next few years.

The body, by virtue of its theme for 2014, is focusing on accelerating economic growth, led by innovation, transformation, inclusion and governance. CII insists that there is a need to invigorate investment and consumption demand with easy monetary policy, and improve ease of doing business by streamlining procedural reforms.

"RBI should also work on reducing interest rates in tandem with government's social inclusion target," he said. The government, according to him, should aim at fiscal consolidation and allow FDI in critical sectors, such as banking and insurance. In this regard, he added that CII will set up a task force to recommend strategy to improve the business regulations in India.

CII president-designate and DSCL chairman and managing director Ajay S. Shriram said that CII had centre of excellence for quality, sustainability and cost competitiveness that offered learning to corporate and SME sectors. Manufacturing, in his words, is an important area and CII is pushing for policies with government on skill development, innovation and export. "We are also working on how to give last mile technology to farmers, so that they can access information and have food security," added Shriram.

CII also strongly supports industry-academia collaboration; SC/ST entrepreneurship; Skillpedia development; sustainability initiatives; global engagement; and innovation and IP creation, among other reforms to improve India's business climate. It also plans to set up a skill development center in Uttar Pradesh.