Home / Knowledge / News / Textiles / CII banks on Budget to revive investments
CII banks on Budget to revive investments
26
Feb '16
Ahead of the Union Budget the Confederation of Indian Industry (CII) has said that it looks forward to suitable policy interventions which would rekindle business sentiment and thereby boost the economy.

In a press release, the CII said that the Union Budget for 2016-17 will be announced at a time when the macro-economic milieu continues to be domestically and globally challenging and the focus should be on stepping up the pace of investment expansion for achieving higher growth and job creation.

“Considering that broad based revival of private investment is being constrained on account of weak order book situation resulting in capacity overhang, there are hopes and expectations that the forthcoming Budget would increase spending by the Government, the public sector and by quasi-government bodies” according to Chandrajit Banerjee, Director General, CII.

According to the CII, higher public investment in key projects especially in infrastructure sectors such as roads, railways, power and waterways would ‘crowd in’ private investment and in turn have a cascading effect on growth. The CII has also recommended speedy implementation of industrial clusters and parks such as NIMZ, DMIC and DFC projects. The National Investment and Infrastructure Fund (NIIF) needs to be activated to provide more avenues for infrastructure financing.

CII would also recommend incentivizing 'off balance sheet' investment proposals, such as NHAI projects, railways etc., where it is possible to generate adequate revenues. The idea could also extend to identifying and promoting more PPP opportunities where the viability gap funding helps facilitate a much greater economic return.

Low-cost housing has one of the highest multiplier effects on the economy as there are over a 150 industry segments directly linked to the home construction Industry. It also provides the largest number of semi-skilled and unskilled jobs. The CII recommended setting deduction on interest for housing loans at Rs 50,000. It also said housing loan repayment may be covered separately and out of the purview of exemptions under Section 80C of the Income Tax Act.

On revenue generation, the CII maintained that at a time when tax revenue is stressed, stepping up non-tax revenue through spectrum sales and PSU divestment becomes crucial. To raise revenue, the government should sell all its stake in the Specified Undertaking of the Unit Trust of India (SUUTI) which can yield nearly Rs.50,000 crore to be used for investment.

On expenditure control of non-productive items, the CII recommends better targeting of subsidies by linking subsidies on fuel, fertilizers and electricity to direct benefit transfer. Fertilizer subsidy should be paid directly to farmers as cash transfers.

The Budget should announce some bold steps to address the problem of non-performing assets (NPAs) in the banking system. As of September 2015, NPAs constituted over 5 per cent of banks’ total advances. The government should consider the creation of a National Asset Management Company (NAMCO) which would take NPAs off the banks’ balance sheet and also focus on rehabilitation, recapitalisation and refinancing of banks. This would release capital, provide banks with lendable resources and restore their health.

Must ReadView All

Courtesy: Li & Fung

Textiles | On 24th Mar 2017

Li & Fung forms new supply chain partnership with PVH Corp

Li & Fung Limited, the world's leader in consumer goods design,...

Courtesy: Alizilla

Apparel/Garments | On 24th Mar 2017

Alibaba's eWTP finds first overseas base in Malaysia

In a step towards using the internet to bring small businesses around ...

Textiles | On 24th Mar 2017

BJMC to produce cotton-jute blended denim fabrics

To meet demand from the market, Bangladesh Jute Mills Corporation...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search