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Mr Venu Srinivasan

Our Bureau

New Delhi, April 1 To be in the driver’s seat of the country’s largest industrial lobby group for the next 12 months is not going to be very easy for the new President of CII, Mr Venu Srinivasan.

Not only will he have to face the surprises that the election outcome may bring, but also spurring industrial activity in the throes of a downturn will have its own challenges. As CII chief he has identified the three key areas that he would like to focus on for desired results– economy, infrastructure and governance.

What will he suggest to the new Government to bring the economy on track?

“I don’t think we should ask for a fiscal stimulus as the Government has already over-extended on its deficit. That will not be responsible,” he says. Instead he suggests a one-time monetisation. “This will release money into the market, otherwise there will be no capital available to the market,” he explains. However, he does not put a definite figure to it. “That will have to be worked out, but it could be 3 or 4 per cent of the GDP or one-third of the fiscal deficit. I don’t know what could be the right percentage, but certainly that’s the direction in which we want to push the Government,” he says.

What will be their thrust on the tax front?

Mr Srinivasan, who is Chairman of TVS Motor Company, would like to see the country transform into an “internal common market” – sans tax borders. “The General Sales Tax (GST) is being thought of as a two-tier tax, which means it is not really a GST. It is actually a Central tax and a State tax. We need one tax… We would like to see an India Free Trade Agreement, so that we can have an internal common market… All States to allow free trade without border controls and border patrols,” he said.

Dumping too is an issue high on his agenda.

“We need to look at the threat that is coming in from dumping. In China, subsidies are opaque. Besides it also has a general cost advantage over us because of infrastructure – power, ports, roads etc… We are 20 per cent more expensive than China. We need infrastructure – we need power reforms, roads, ports, airports, so that we become competitive.” Hence Mr Srinivasan’s emphasis on the Government removing infrastructure constraints, increasing spends and ensuring implementation.

Within CII what will be his single most effort?

To draw out a new code of corporate governance for its members and try hard to advocate the highest level of compliance. “CII has no ability to enforce anything except on the organisation itself… But what we can do is advocate to our members.” Mr Srinivasan drew a parallel with how the chambers had worked on quality and made its members aware of its utmost importance. “You have to start a movement and slowly bring people into it. Because ultimately you realise that governance is in your own interest. Better governance means better stock prices.”

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