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Our Bureau

New Delhi, July 25 The Federation of Indian Chambers of Commerce and Industry (FICCI) on Friday submitted a report to the Prime Minister, Dr Manmohan Singh, that recommended an agenda for the Government for the next 100 days.

The chamber urged him to stimulate investments, restore business confidence in the economy and address the perception of a looming fiscal crisis.

“The expansion of the Indian economy over the last four years has been on the back of increasing investment flows and rising investment to GDP ratio.

“Therefore, it is important for the Government to sustain and stimulate such investments in critical sectors so that growth is maintained,” said the FICCI President, Mr Rajiv Chandrasekhar, at a press conference after meeting the Prime Minister.

The chamber presented a broad spectrum of measures to boost investments in infrastructure, stabilise the policy framework for SEZs, finalise a comprehensive demand moderation strategy based on market forces and grant ‘industry’ status to the retail sector.

FICCI recommended a series of policy reforms including changes in the priority sector lending norms for banks to favour investment by corporates in the agri market, construction of warehouses, cold chain transportation, allow private sector that invests in agri infrastructure to be eligible for 150 per cent weighted deduction with regards to investment in R&D.

It also sought hiking the cap on foreign stake in insurance to 49 per cent from 26 per cent, clearance of the Pension Fund Regulatory and Development Authority Bill and Banking Regulation Bill. Besides, it called for measures to push investments in telecom by expediting the announcement of a world-class 3G policy and auction guidelines. The chamber felt that if the RBI continues to tighten the monetary policy for the next few quarters, the economy could enter into stagflation.

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