IIP upturn: Chambers call for fast tracking reforms

Following the rebound in factory output, apex industry chambers have urged the Government to fast track reforms.

“Notable among the developments is that production of basic goods has shown some improvement and the continuous shrinkage in intermediate goods industry has turned around,” said Mr Rajkumar Dhoot, President, Assocham.

The figures indicate that the industrial production can recover and resume a higher growth path provided some positive steps are taken to encourage activity, he observed.

The PHD Chamber of Commerce and Industry, too, felt that the rebound in industry output was inspiring on strong growth in consumer durables and electricity generation segments.

“However, there are a host of reforms, which if implemented could make the industry environment conducive for investment and help attain higher growth trajectory,” it said in a statement.

CII has been requesting the Government and RBI to cut cash reserve ratio and repo rates by 100 basis points to spur investments.

“There is also a need for fast-tracking the reforms process which would stem the slide in industrial production by announcing investor confidence boosting measures such as allowing foreign investment in multi-brand retail and increasing FDI limits in civil aviation and defence production,” it said.

Mr R .V. Kanoria, President, FICCI, said “Industry is eagerly awaiting the implementation of some of the announcements being made in the last few weeks by the Government.”

The FICCI asked the Government to take some bold decisions on reforms in areas like decontrolling diesel price, reducing fiscal deficit and encouraging foreign investments to uplift business sentiments.

> heena.k@thehindu.co.in

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