FICCI says will try to convince States on GST implementation

The new leadership of the Federation of Indian Chambers of Commerce and Industry (FICCI) said on Thursday it is committed to convincing the States that have apprehensions regarding the provisions of the Goods and Services Tax (GST) about its benefits.

“As asked by the Finance Minister, we will try to convince the States and also take their ideas to the Centre and convince them that their apprehensions would be covered (in the GST),” FICCI's President, Mr Harsh C. Mariwala, said.

He added that States that are opposed to the implementation of GST have some “unnecessary fears” and “we will try to remove them”.

Mr Mariwala also said during a recent lunch meeting with a group of BJP Members of Parliament, he found them to be receptive to the idea.

“During the meeting, they hinted that this time they might support it,” he said.

On the issue of inflation, Mr Mariwala said foreign direct investment would help contain the headline inflation numbers. He said there is need for a comprehensive food security policy to control food inflation.

The chamber's new president said interest rates should not be hiked to such an extent that they start impacting the growth of the industry.

FICCI, for the first time, has inducted a woman on its leadership team. HSBC India's Country Head, Ms Naina Lal Kidwai, has been elected Vice-President of the chamber. She said energy security would be a paramount concern for the country in the years to come.

“India should diversify into other energy sources so that we are not left open to the rigours of price movement of a product, 70 per cent of which we import,” she said.

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