Give the Government 18-24 months to fulfil its promises, says Jyotsna Suri, the new President of the Federation of Indian Chambers of Commerce and Industry (FICCI).
In an interaction with BusinessLine, Suri said “six-seven months is not enough time to judge anyone. Things have moved, mood has stabilised, but results will been seen only after a year or so.” Edited excerpts:
It is just over six months old. It will take about 18-24 months for the Government to fulfil its promises.
He (Prime Minister Narendra Modi) has generated a lot of interest for India globally.
What about the home front?
At the home front, he has a strong Cabinet, which is working for the development agenda. I don’t think the industry can be rash and say it has to happen now. Things take time.
Will opening up FDI in key sectors get India business?
It’s a beginning. What foreign investors want is ease of doing business, security, and return on investments. Today, they are confident that they are not going to lose money here. I believe we will see more investments coming in. At the same time, the Indian investors also need to be supported. What we need is the mix of both, we need the foreign investor to come in and we also need the Indian investor to be encouraged to rejuvenate the investment cycle which had come to a dead end.
What is your take on the goods and services tax (GST)?
The States are a bit apprehensive about losing revenues. But I think most of them are now beginning to understand that in the long run, this is the best way forward. Yes, States need to be convinced and some are on board. I think the bigger issue is the tax rate… that has to be prudent. We are asking the Government that the industry should be involved in consultations.
Expectations from the next Budget…
Finance Minister Arun Jaitley has to keep development in mind. We want ease of doing business, cheaper capital cost, GST, land acquisition, FDI in insurance, among others. Another component is subsidy rationalisation.
We have unlimited subsidies, we don’t know where they are going. I personally feel we should not make people dependent on the Government for dole. Make them earn it.
Do you expect new policies?
I am not looking at new policies. Policies that are already in the pipeline need to be implemented. For example, the Land Acquisition Act, the Make in India campaign and the proposal to build smart cities. If there is an issue with land, we will be back to square one. If land issues are sorted, we can ease up doing business, and if we are able to get our interest rates down slightly, the first push will have come into play.
The Government is focused on skill development. What is your take on it?
Demographic dividend of the country needs to be channelised. It’s not about getting a degree and not being able to get a job. Very clearly, education has to be defined whether primary or higher education, as skill development.
The skill development or the vocational training element is where we are lacking. Here the private players can play an important role.
You have been involved with the hospitality industry. What changes are you seeking there?
E-visa has been a very big move for the industry, introduced for 43 countries. What we need to do is to prepare a ‘negative list’ and allow the facility for all other countries. For example, setting up a hotel is not easy. Multiple clearances need to go away.