India is coping with serious economic crisis, needs key reforms: FICCI

June 4, 2012

As per the FICCI, the economic situation is grave with its low growth, high inflation, high fiscal deficit and the highest ever trade account deficit and it needs urgent addressal in the form of refoms. The body has called for bold steps like allowing FDI in multi-brand retail, Rate-cuts, and limit funding of welfare programs to instill growth.

Suggestions by FICCI:

Timely implementation of Goods and Services Tax (GST) which can change the dynamics of Indian industry and exports. It can also add 2% to the GDP. It will also increase Tax administration and Tax collection
Immediate moderation of monetary policy and reduce interest rates by 2% points ,CRR by 1% point, Repo rate by 1%
Re-examine the Land Acquisition Bill, as the bill restricts the use of irrigated multi-cropped land for infrastructure development
To decontrol the prices of diesel and other oil products
Repatriation of black money immediately that could alleviate the balance of payment situation
immediate halt on any additional welfare spending with efficacious distribution of already allocated fund
To take measures to provide accelerated depreciation and to scrap MAT for infrastructure projects
Setting up of a coal regulator and allowing coal swapping as an instrument to optimize physical movement of coal in the country
To bring new policies including the National Manufacturing Policy and the National Electronics Policy to foster manufacturing

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