Industry leaders at a meeting with finance minister P Chidambaram on Wednesday pitched for more reforms to revive investments and also pushed for the removal of uncertainties over regulation and tax policies.
Representatives of FICCI, CII and Assocham urged the finance minister to take bold steps to rein in the ballooning fiscal deficit and measures to revive investment in the infrastructure sector.
Expressing concern over the high cost of borrowing for India Inc, RV Kanoria, president, FICCI said, ?We have asked for more incentives for the infrastructure sector by facilitating cheaper long-term loans. We have asked FM to take measures to spur demand.. Interest rate should be cut by 100 basis points for the festive season. Even the finance minister agrees that the RBI should relax its interest rate policy.?
The industry leaders requested the government to simplify the taxation for NRI investors and urged for putting controversial retrospective changes in tax laws and GAAR off the table. Effective and speedy clearances of big infrastructure projects was also mooted.
Naina Lal Kidwai, HSBC India Head, said, ?We have made a suggestion to allow exporters to tap overseas funds for working capital requirement and avail of priority sector lending by banks.?
The meeting comes in the backdrop of the recent reform initiatives taken by the government, including FDI in multi-brand retail and allowing foreign airlines to invest up to 49% in the domestic carrier. Venugopal Dhoot, chairman, Videocon Group said, ? We urged the finance minister to get the land acquisition bill passed in the coming Parliament session as it will boost the industrial growth.?
The industry leaders requested Chidambaram to take urgent steps to prune in its runaway subsidy bill and implement recommendation of the Vijay Kelkar committee on fiscal consolidation plan.The industry strongly supported the suggestions made by the Shome panel to defer GAAR and controversial retrospective taxation.
