Confederation of Indian Industry (CII) expressed its concerns regarding the Economic growth and laid emphasis on a settled GST. CII explained thoroughly that a settled GST would result in the improvement of Creditability and also in capacity expansion by an increment in infrastructure investment and these are amongst the seven key drivers that would help the Indian Economy grow by 7.5% next year.
CII further talked about the Economy and the position of India in the Economic sector in the year 2018 and 2019. CII regarding the ‘Growth Outlook for 2019’ said that in this Era, where the World is facing Economic uncertainties due to the dynamic position and results of the Trade wars held globally, India is showing its potential and is shining as one of the fastest growing economies with an exemplary GDP in 2018, which is expected to grow and expand in 2019.
In a statement CII said that the increase in demand, proper GST settlement in the country, capacity expansion through increment in investment in infrastructure and the good results of the reform policies undertaken also the improvement in the credibility especially in the service sector at 24%, all these factors are going to proved to be a boon for the Indian Economy and a will boost the GDP growth in the range of 7.5% in 2019.
The Positive outlook comes from the increased demand conditions arose out of the election spending, stronger services and infrastructure sector. On the Economic front, the Reserve Bank of India believes that Indian Economy would grow to 7.4% in 2018-19.
Some GST slabs were suggested by the CII:
- A standard rate
- A lower rate for some mass consumption items
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On the other side, fuels, real estate, electricity to be included in the head of the levy. A Suggestion came from the Industry lobby that RBI should once again look upon the lending restrictions on banks prompt and corrective action, PCA and should take action like opening a limited special liquidity window for handling the emergency conditions in Financial institutions, including the Mutual funds, hence improving liquidity. The industry lobby also suggested some important measures that would prove to be beneficial in conducting business along with easing it. The suggestions are:
- The digitization of land records
- Opening online single window systems in states and enforcing contracts
India’s target in the context of the World Bank’s ease of doing business index is to place itself amongst the top 50 countries from its current rank of 77.
CII laid emphasis on the requirement of ‘strong programme of infrastructure development’ which would provide growth foundation for the downstream industry sectors and would also generate employment opportunities. IT further suggested all the states for ‘Agriculture Produce and Livestock Marketing Model Act’ to let the agriculture produce get marketed. e-NAM Mandis would help in the promotion of inter-state trade it further added.
CII further discussed the non-performing assets and said that additional benches of the National Company Law Tribunal would address all the issues of non-performing assets.
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Further, it talked about the Oil sector and said that the measures mentioned below would help India in tackling the risk of higher oil prices:
- Increase in domestic oil production
- Opening a special window for oil marketing companies to procure oil, and
- Stepping up diplomacy with the US to continue oil purchases from Iran
