India Inc: Fast track FDI, new tax regime
Spooked by the sharp dip in fourth quarter GDP growth to 5.3 per cent, India Inc has asked for strong and decisive action on reforms from the Government to regain the growth momentum. The CII President, Mr Adi Godrej, said the reforms process needs to be urgently revived.
"Opening up foreign direct investment in critical sectors such as civil aviation and Defence, and allowing FDI in multi-brand retail will go a long way in improving sentiments. GST alone will add 2 percentage points to GDP. This particular reform has been delayed for three years now," he said, adding that although single brand has opened up, the norm of 25 per cent sourcing from small and medium enterprise should be tweaked to accommodate any Indian manufacturer.
Warning that the country could slip back into a "1991-type crisis", Dr Rajiv Kumar, Secretary-General, FICCI, said: "Urgent and bold steps are immediately needed to prevent the economy from descending into a crisis."
Pointing to the decline in the growth of Gross Capital Formation, he said, "This shows a grave crisis of investor confidence."