The Hindu : CII calls for Govt.-industry partnership

Online edition of India's National Newspaper
Thursday, May 01, 2003

Business

Business

CII calls for Govt.-industry partnership

By Our Special Correspondent

NEW DELHI APRIL 30. The Confederation of Indian Industry today expressed confidence that Government and industry can work together to achieve the "aspirational growth'' of 8 per cent sustained growth over the next seven years till 2010.

As for the current state of the economy, he forecast a growth of 6 to 6.4 per cent for 2003-04 to which industry will contribute by a rise of 6.5 per cent, services by 7.5 per cent and agriculture by 2.4 to 4 per cent.

Outlining the apex industry association's agenda for the year, the new CII President, Anand Mahindra, stressed that the country needed growth and should aim for an aspirational growth rate of 8 per cent.

Highlighting the need for industry to work with the Government, he said the Government has always been performing the role of a facilitator and it would continue to act as an enabler to help achieve economic growth.

Referring to the international scenario, he said India had already recorded one of the highest growth rates in the world during the 1990s with only China having a higher GDP growth. Given the size of the Indian market, he felt the choice was not India versus China but India and China.

Mr. Mahindra, who is also the Vice Chairman and Managing Director of Mahindra and Mahindra, noted that to achieve the sustained 8 per cent growth, industry would have to grow by 11 per cent with the share of industry in the GDP rising to 33 per cent. Exports would have to rise from the present $50 billion to $103 billion in 2010 while foreign investment would have to reach $24 billion in 2010 from $4 billion now.

He pointed out that if the economy grew by 6.5 per cent till 2010, the country would have a GDP of $809 billion, while it would be even larger at $859 billion if it expanded by 8 per cent. He said the size of the market would grow to $584 billion on an 8 per cent GDP growth as against $550 billion on a 6.5 per cent growth. Similarly, household savings would also increase to $223 billion with an 8 per cent GDP growth rate. Presenting an agenda for action by the Government on reforms, the CII President listed reforms of the governmental approval system, measures to encourage FDI inflow, accelerate privatisation process, reforms in labour, tariff, VAT and excise and raising FDI cap in insurance and full capital convertibility by 2005-06.

On the infrastructure sector, he said it needed special attention with urgent reforms needed on the power front where more investment was also needed. He maintained that telecom had been a success story despite the "drama'' surrounding it at present. But more decisive movement was needed on the ports and airports front, he felt. Regarding the need to pursue reconstruction work in Iraq, he disclosed that the CII would soon open an office in Baghdad to promote sub-contracts for Indian firms besides working with international agencies. The CII has also formed a taskforce on Iraq under the chairmanship of ONGC Chairman, Subir Raha.

On the CII's internal agenda, he said the theme for 2003-04 would continue to be "competitiveness of India Inc'' with the added sub theme of "building Indian MNCs.'' In line with the aim of building Indian MNCs, a new Indian MNC Council is being set up to be headed by the CEO of Ranbaxy Laboratories, D. S. Brar.

The CII is also setting up ten key policy councils to develop sectors such as manufacturing, agriculture, knowledge industry, quality, corporate governance and infrastructure regulation to be headed CEOs like Jamshyd Godrej, Sunil Munjal, Yogi Deveshwar, Ashok Soota, Venu Srinivasan, K. G. Ramachandran, Rajesh Shah, Sunil Bharti Mittal and N. R. Narayana Murthy.

Printer friendly page
Send this article to Friends by E-Mail

Business