CII is deeply concerned with the continuing decline in GDP growth in the second quarter of the current fiscal driven by the poor performance of the manufacturing and agriculture sectors. At 5.3 percent, the Q2 GDP growth is very disappointing.
Reviving the investment climate and containing fiscal deficit should be top priority. There needs to be further rationalization of subsidies. The increase in diesel prices announced in September was a welcome measure. More needs to follow.
Similarly, in order to revive investments, the time has come for the National Investment Board to be set up.
The current situation requires concerted fiscal, monetary and administrative interventions. One of the biggest stimuli would be introduction of GST and the Government should make a concerted effort at introducing it by April 2013. Announcements to that effect would lift sentiments in the country and also outside. CII has been advocating an easing of the monetary policy by a cut in repo and CRR rates.
Chandrajit Banerjee, Director General, CII
India Infoline News Service / 09:04, Jan 22, 2015
The outlook is a flat start. The market will look to scale to new peaks though not much effort is needed for the same. HUL saw a rally and short-covering may have pulled it up further. Speculation is on that its parent will raise stake through an open offer. After the cooling in oil prices, Cairn results will be in focus.