The Hindu Business Line : CII says fiscal discipline must be tightened

THE Confederation of Indian Industry is to hold its national conference and annual session on `Towards Double Digit Inclusive Growth' on May 17 and 18.

The 2005 session will provide a platform to explore the feasibility of a stretch target and examine whether India can move to a growth trajectory similar to that of China, stated CII. The industry chamber said India has got a new deal from policymakers, which needs to be cashed in on.

Speakers include the Finance Minister, Mr P. Chidambaram; the Defence Minister, Mr Pranab Mukherjee; the Home Minister, Mr Shivraj Patil; the Minister of Water Resources, Mr Priyaranjan Dasmunsi; the Minister of Food Processing, Mr Subodh Kant Sahay; the Deputy Chairman of the Planning Commission, Mr Montek Singh Ahluwalia; and the SEBI Chairman, Mr M. Damodaran.

The Leader of the Opposition, Mr L.K. Advani, will also share his perspective on pushing India to the next growth mode, said a CII release.

The CII has outlined six measures that can take India to a double digit, inclusive growth.

Emphasising that it is necessary to manage the fiscal deficit, the CII said a lower fiscal deficit would lower inflation, control interest rates and spur growth.

The industry body said fiscal discipline should be tightened by reducing revenue deficit. India, in fact, should try to remove fiscal deficit as it crowds out investment in capital formation.

It added that the Government should implement the commitments of the white paper prepared by the empowered committee and move towards a unified tax system using the VAT principle of taxing consumption of all goods and services.

Apart from calling for an early passage of the APMC Act, the chamber said the Government should also ensure quick implementation of the Integrated Food Law and more investment in rural infrastructure such as roads and cold chain.

The CII also recommended more investment in e-governance as it will reduce government-public interface and corruption. It would be imperative to consider free ports and move beyond SEZs, it added.

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