Interviews
To deal with global meltdown CII suggests five point agenda
17 Nov '08
4 min read
i.Permitting higher levels of FDI in order to attract foreign capital;
ii.Removal of the caps and interest rate ceiling on NRE and FCNR(B) deposits;
iii.Creating a new bonds scheme on the lines of the “Resurgent India Bonds”; and
iv.Open up G-Sec and T-Bills (debt markets) to FIIs.
e.Utilisation of foreign exchange reserves for creating liquidity in the capital markets.
f.Create a Bank equity Fund with Government holding in Banks and sell part stake to Multilateral Institutions to attract foreign exchange.
g.Foreign branches of Indian banks should be capitalized by the Government / RBI. They can then help rollover ECBs held by Indian companies.
4.Credit flow and impetus to growth
h.Establishment of a corpus for lending to SMEs.
i.Allow creeping acquisition of upto 75 percent without the 5 percent annual cap for promoters.
j.Focus on Infrastructure development to pump-prime economic activities through;
i.Speedy release of government funds for various projects to ensure timely implementation and generation of economic activity.
ii.All Infrastructure Projects need to be fast tracked and other potential PPP projects need quick projectisation and deployment.
iii.Set up National Infrastructure Facilitation & Monitoring Agency (NIFMA) in partnership with Industry to facilitate & monitor implementation of Infrastructure projects.
iv.The Government should increase its direct spending on infrastructure projects, such a low cost housing projects.
v.Designate India Infrastructure Finance Co Ltd., as the official nodal development financial institution (DFI) for the infrastructure sector to refinance, guarantee & subsidize loans to all infrastructure commercial lenders.
vi.Allow Infrastructure Development Companies to float tax free bonds
5. Fiscal and Export Promotion Imperatives to help Real Economy
k.Strengthening of the Anti Dumping Directorate.
l.Allowing 100 percent CENVAT credit for capital equipment in capex in the same fiscal.
m.EXIM Bank to be allowed to access forex from RBI to lend to exporters at low spreads.
n.All Export Taxes to be reviewed and rationalised.
Click here to read recommendations in detail.
ii.Removal of the caps and interest rate ceiling on NRE and FCNR(B) deposits;
iii.Creating a new bonds scheme on the lines of the “Resurgent India Bonds”; and
iv.Open up G-Sec and T-Bills (debt markets) to FIIs.
e.Utilisation of foreign exchange reserves for creating liquidity in the capital markets.
f.Create a Bank equity Fund with Government holding in Banks and sell part stake to Multilateral Institutions to attract foreign exchange.
g.Foreign branches of Indian banks should be capitalized by the Government / RBI. They can then help rollover ECBs held by Indian companies.
4.Credit flow and impetus to growth
h.Establishment of a corpus for lending to SMEs.
i.Allow creeping acquisition of upto 75 percent without the 5 percent annual cap for promoters.
j.Focus on Infrastructure development to pump-prime economic activities through;
i.Speedy release of government funds for various projects to ensure timely implementation and generation of economic activity.
ii.All Infrastructure Projects need to be fast tracked and other potential PPP projects need quick projectisation and deployment.
iii.Set up National Infrastructure Facilitation & Monitoring Agency (NIFMA) in partnership with Industry to facilitate & monitor implementation of Infrastructure projects.
iv.The Government should increase its direct spending on infrastructure projects, such a low cost housing projects.
v.Designate India Infrastructure Finance Co Ltd., as the official nodal development financial institution (DFI) for the infrastructure sector to refinance, guarantee & subsidize loans to all infrastructure commercial lenders.
vi.Allow Infrastructure Development Companies to float tax free bonds
5. Fiscal and Export Promotion Imperatives to help Real Economy
k.Strengthening of the Anti Dumping Directorate.
l.Allowing 100 percent CENVAT credit for capital equipment in capex in the same fiscal.
m.EXIM Bank to be allowed to access forex from RBI to lend to exporters at low spreads.
n.All Export Taxes to be reviewed and rationalised.
Click here to read recommendations in detail.
Confederation of Indian Industry
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