The Hindu Business Line : `Centre-State cohesion key to boost investments'

IN a wish-list that seeks to remind the new Government on the unfinished agenda of economic reforms, the Greater Mysore Chamber of Industry (GMCI) has highlighted the need for a Centre-State convergence to remove obstacles for investments.

In a note listing the priorities and issues, the Chamber said Karnataka and Andhra Pradesh, though perceived as more aggressive in economic reforms, did not achieve the desired goals because reforms did not percolate down the line. This phenomenon could be attributed to the acute imbalance, which created a hiatus, said Mrs Indra Priya Menon, outgoing President of GMCI.

She said, "If we look back upon the reforms process so far, we will come to the conclusion that it has not helped to improve the living standards of the vast majority of our people. This stark reality has been reflected in the just concluded Lok Sabha and Assembly elections."

The reforms were limited to certain high profile sectors of services and manufacturing industry, she said adding that there had to be a comprehensive and cohesive approach to reforms by both the Centre and the States.

Stating this, she spelt out the agenda for accelerating the State-level economic reforms, which among other things, underlined the need to focus on sectors and markets in which Karnataka has strategic advantages, encourage the growth of manufacturing sectors along with knowledge-based industries and enhance value-addition in products and processes through enabling policies. Mrs Menon regretted that though the previous Government had set up Food Karnataka Ltd (FKL) to act as a spherical purpose vehicle on GMCI's representation, it had not met even once.

On the new international airport, she said the Chamber welcomed the progress with the Centre giving final clearance and added that the Government should create good, efficient and low-cost rapid transport system for providing speedy connectivity to the airport. Proposal to set up regional airports should also be speeded up.

For better resource allocation to develop and strengthen infrastructure facilities in rural and urban areas, GMCI wants the State Government to seek higher allocation from the Centre. The Chamber had already made a presentation to the 12th Finance Commission in this regard and wanted the quantum of allocation to be raised from the current 29.5 per cent to 45 per cent.

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