The Hindu Business Line : FICCI submits action plan to spur economic growth

THE Federation of Indian Chamber of Commerce and Industry (FICCI) has submitted an action plan to spur economic growth in key sectors such as agriculture, manufacturing, disinvestments, labour and education to the Prime Minister, Dr Manmohan Singh.

Mr Y.K. Modi, FICCI President, drew the Prime Minister's attention on the key areas involved and also emphasised on the remedial steps that were needed.

On agriculture, Mr Modi stressed that the sector has been bypassed by reforms and there is an urgent need to de-regulate the farm sector to free the farmers from a plethora of controls that impact their incomes.

Some of the key areas that figured during the discussion were deregulation of the agriculture marketing system, abolition of the Agricultural Products Marketing Committee Act (APMC Act) and the restrictions on inter-State movement of grain and farm products. There is a need to create one Indian market for the farmers, Mr Modi said.

He also suggested that apart from rejuvenation of the rural sector, stimulation of investment in the manufacturing sector holds the key to rapid growth of the economy and generation of new jobs, particularly for semi-skilled workers.

The potential of sectors such as textiles in creating new jobs was also discussed.

The FICCI President suggested that the lack of flexibility in the labour policy was constricting the growth of employment and urged the Prime Minister to consider making labour policy a State subject.

On the issue of disinvestments, Mr Modi suggested that the proceeds from disinvestments should be earmarked for a dedicated fund for investments in the agriculture and rural sectors so that the money can be utilised for generating opportunities for the poorest sections of society.

Mr Modi also suggested efficient delivery mechanisms for improvement of key areas. He said that dedicated missions to implement development programmes in critical sectors such as the primary education, drinking water, sanitation etc., should be launched to maximise the benefit of these programmes to the rural and urban poor.

Responding to Mr Modi's various suggestions, the Prime Minister categorically stated that his Government was committed to accelerating economic reforms and reorienting them to spread the benefits to improve the lives of weaker sections and the common man.

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