Industry Urges to Incentivise Exporters, Two Pronged Strategy in India, ASSOCHAM Urged Government to Incentivise Exporters, ASSOCHAM Suggest Government Two Pronged Strategy to Help Indian Growth

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SME Times News Bureau | 31 May, 2010
The Associated Chambers of Commerce and Industry (ASSOCHAM) Sunday urged the government to incentivise exports, while suggesting a two-pronged strategy to push the manufacturing and agricultural sectors to help the economy achieve double digit growth by 2014.

In its proposal to the government, ASSOCHAM urged for incentivising exports to help India grow its external engagements, especially in rewarding corners such as Latin America, and African continent.

The industry body also prescribed two pronged strategy to help India grow at double digit rate by 2014 for which a consistent emphasis would have to laid to achieve over 15 percent and 4 percent growth in manufacturing and agriculture.

On manufacturing front, the chamber viewed that 15 percent in manufacturing is feasible since Indian economy has started doing reasonably well and is expected to clock a GDP growth of over 8.5 percent in fiscal 2009-10.

It also added that in order to ensure competitiveness of the industries, friendly policies need to be taken so that the industries can go in for intensive research and development programmes and infuse new technologies.

Apart from this, ASSOCHAM viewed, it needs to be monitored that the existing projects are being carried out efficiently. The States must be involved in the process. Investments need to be made in the power sector through public private partnerships and appropriate reforms.

"The contribution of manufacturing in it would be substantial," pointed out the ASSOCHAM adding that it will continue to do well as a result the growth rate for current fiscal is likely to be around 9 percent.

The industry body added that the growth momentum will automatically move on towards double digit as projected by the ASSOCHAM provided flawless goods and service tax is put in place and implemented latest by April 2011 since promised tax structure will remove distortions and inefficiency in administration of taxation.

"The Direct Tax Code (DTC) should also be as per anticipation as current income tax system provides for loopholes which cause restrain in the growth of economy," it added.

On agriculture front, the chamber emphasized that pace of reforms will have to be further accelerated, particularly by ensuring variety of seeds and increasing land fertility for which agriculture ties would have to be formed to enable India access technological up gradation in the field of agriculture and horticulture.

Irrigation facilities would have to be added through higher allocations from Central Pool with initiatives arising from Planning Commission since irrigation is largely dominated by state governments, ASSOCHAM said.