CII notes that the Economic Survey projects recovery in GDP growth in the next two fiscals to 7.6% and 8.6% respectively. CII’s concerns on high interest rates, falling investment and high fiscal deficit having impact on industrial growth has been rightly highlighted by the Economic Survey. Concerted actions on fiscal consolidation and further policy reforms that would unlock the growth potential of Indian industry are needed. CII feels that the growth outlook for the next fiscal could be better if fiscal consolidation is given high priority along with reforms measures on land acquisition, taxation, infrastructure including power, agri-infrastructure, addressing supply side bottlenecks and further opening up of FDI are undertaken. We hope the Union Budget 2012-13 would provide a direction in this regard.
New Delhi
15th March 2012