Strong action to spur consumption, investments and net exports will take India’s gross domestic product (GDP) growth rates much higher, according to Vikram Kirloskar, president of Confederation of Indian Industry (CII). This is the right time for India to think big and envision a GDP growth rate of 10 per cent to greatly improve development outcomes, he said. Kirloskar, who is chairman and managing director of Kirloskar Systems Ltd and vice chairman of Toyota Kirloskar, was addressing his first press conference recently after assuming office. CII is according high attention to four key issues: energising growth, generating new jobs, deepening India’s overseas footprint and energy security. CII is also focussing on strengthening Indian industry’s role in policy solutions as well as targeted action initiatives under the theme of Competitiveness of India Inc: India@75– Forging Ahead, he said. With GDP growth moderating in the last quarter, the CII president emphasised four key drivers for reinvigorating the growth rate: boosting consumption, investments, public expenditure on social and physical infrastructure and net exports. Consumption will be greatly encouraged by reducing the personal income tax burden, adding more disposable income for consumers, he observed. The CII president requested the government to maintain high public outlay on infrastructure like electricity, roads and highways, telecommunication and other transport as the next growth driver. CII estimates that $1 trillion is required for infrastructure in the next five years. He suggested a triple-pronged approach for job creation, relating to employment intensive sectors, skilling and labour reforms for enterprise creation. India should target merchandise exports of $400 billion for 2019-20 from $331 billion now, he said. Suggesting fast-tracking of free trade agreement (FTA) negotiations with the European Union, he said the new trade policy should support foreign direct investment (FDI) for better integration into global value chains, according to a CII press release.
Source – Fibre2Fashion.
