ASSOCHAM plan to boost investment

By Our Special Correspondent

NEW DELHI, JAN. 4. The Associated Chambers of Commerce & Industry has proposed a 10- point strategy to give a big boost to fresh investments. It has called for review of the current policy framework for four of the eight major sectors contributing most to the overall improvement in the growth rates.

The Chamber president, Mr. Shekhar Bajaj, said the performance of the economy in the current year was commendable despite international sanctions and the Kargil conflict but a ``sustained recovery'' could not be assured unless the Government took speedy steps to improve investment levels.

Mr. Bajaj, therefore, suggested reduction in the interest rate by another two basis points in the medium term, inclusion of most sectors under the 100 per cent automatic approval route except for a small negative list, steps to improve savings in the public sector and entry to more private sector players in the banking sector.

Further, he recommended faster de-reservation of small scale industry, complete overhaul of the legislative and administrative framework to remove impediments to housing and construction sectors, privatisation of long distance and international services in the telecom sector, introduction of a separate legislation to create a dedicated fund for development of highways, larger investment in transport, storage and handling facilities in rural areas and allocation of adequate funds for irrigation and water conservation.

The major improvement in recent times has been the sharp rise in the consumer non-durable segment where growth rates touched 8.6 per cent in October. This may point to a marked improvement in the growth of rural earnings since the beginning of the kharif marketing. It may also indicate a faster trickling down of incomes in recent months.

Send this article to Friends by E-Mail

Section  : National
Previous : BJP ahead in Gujarat local polls
Next     : NHRC writes to CMs and CJs on prison reforms