News and Events

CII calls for urgent measures

With GDP growth at 6.9% in 2011-12 vis à vis 8.4% in the previous two years, the Indian economy is currently in the midst of a slowdown. In addition, key economic indicators including high fiscal deficit (at 5.9% of GDP), high inflation and deceleration in investment activity have further exacerbated the situation.

Meanwhile, weakening industrial growth (plummeting to 4.5%) is a key cause of concern. Despite the grim outlook, there is some good news. With the interest cycle turning around, some recovery in capital formation and in GDP growth is expected in 2012-13.

Mr Adi G Godrej president of CII at a press conference said “We thus have ahead of us the Herculean task of reviving economic growth. Further reforms are needed for the economy to get back to pre crisis growth trajectory. Hence, it is imperative that there is a focus on Reforms and Governance aimed at revival of growth. This needs structural reforms both at the central as well as the state level.”

Mr Godrej added CII has been continuously engaging with the Government and political parties in advocacy efforts to promote reforms in critical areas such as Taxation, Financial Services, Land acquisition, Manufacturing, Energy, Mining, and several others area of importance to the economy.

He said “For instance, GST implementation alone could contribute 1.0% to 1.5% to GDP growth. Hence, CII has been working at all possible levels to build consensus on implementation of GST and the coming year will see further deepening of this engagement with states.”

CII strongly supports the raising of FDI Limits in aviation, insurance, defense and opening up multi brand retail. CII will continue to engage with the Government and political parties to sensitize them on the positive impact of FDI reforms.

CII is also advocating further reduction of Interest rates by 100 bps by December 2012 to stimulate investments.