Skip to main content

Survey: Govt needs to speed up reforms for growth

By
Government needs to speed up implementation of GST, address the issue of cheap imports and improve investment climate as majority of sectors are witnessing moderate growth, says a CII survey.
The survey, which tracks the growth of economic sectors on a quarterly basis, also stressed on the quick implementation of the announcements in the budget especially in the infrastructure space, boosting export competitiveness and addressing the issue of delayed payments.
Overall, the current trends reveal that majority of the sectors are continuing to witness moderate growth trends with excellent and high growth limited to some sectors, it said. However, a decline in the share of sectors registering low growth is clearly an indication towards the bottoming out of growth trends in the majority of sectors.
"Going forward, on the back of the various measures and structural reforms taken by the government, it is expected that the current momentum would be supportive of the revival becoming broad based in the coming quarters," it said.
It said key economic reforms like GST, land acquisition, labour laws, public procurement policy will add to improving the business environment and also play a big role in investment decisions.
To further support the Make in India initiative, there is a need to strengthen anti- dumping laws to protect local manufacturing and provide subsidies on production of major raw materials of key export products to make them cost competitive, it said.
"Increasing tax credit and providing tax deduction for R& D would provide acompetitive edge to several sectors involving R& D.
Tax incentives would significantly help small companies, which face a difficult task of acquiring credit from banks," the CIIASCON survey said.
Business Standard New Delhi,06th June 2016

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

By
  New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...
Post a Comment
Read more