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