Assocham's blueprint for reviving economy

09 Sep '15

4 min read

Assocham said the government should review India's Trade Agreements with other nations. It said there is a need to resolve issues of export discrimination with trading partners (China imposes selective import duty on certain Indian exports like cashew nuts, oilseeds, gelatin, etc. while other countries are exempted).

It wants the Centre to encourage states to form Export Promotion Centers, appoint dedicated Economic and Commercial attaché in India's foreign missions, rationalize MAT and DDT for SEZs and build coastal SEZs on the lines of China for trade growth.

To leverage the service sector, Assocham has suggested a two-pronged strategy. The first is reducing tax distortions, and second, by allowing extensive foreign investment and using the country as a services hub of the world.

It said that with the right balance of fiscal and monetary policy measures and sustained economic reforms, the Indian economy has the potential to seize the opportunity and use the global turmoil to its advantage, to reinforce India's position as the top investment destination among emerging markets.

Meanwhile, the Confederation of Indian Industry (CII) is a press release, has welcomed the Prime Minister's initiative of consulting industry. CII president Suit Mazumder India benefits in terms of lower global commodity prices but would increasingly have to rely on domestic demand for sources of growth.

The CII believes exports would be a key concern in the current environment. In view of the mega trade agreements that are being developed (like the TPP, RCEP, TTIP, etc), India needs to prepare by raising standards and regulatory infrastructure. To counter the global demand slowdown, India should target rural demand at home by investing in agriculture, irrigation and rural infrastructure, said Mazumder. (SH)

Fibre2Fashion News Desk – India

More Textiles News - India...