7.4/10 IS THE LEAST THAT MODI GOVT. DESERVES IN ITS 1st YR. OF OFFICE: PHD CHAMBER

7.4/10 IS THE LEAST THAT MODI GOVT. DESERVES IN ITS 1st YR. OF OFFICE: PHD CHAMBER

7.4/10 IS THE LEAST THAT MODI GOVT. DESERVES IN ITS 1st YR. OF OFFICE: PHD CHAMBER

 

No.PR-31
May 21, 2015
New Delhi

 

7.4/10 IS THE LEAST THAT MODI GOVT. DESERVES IN ITS 1st YR. OF OFFICE: PHD CHAMBER
 

PHD Chamber of Commerce and Industry on Thursday termed the performance of Modi led government ever since it assumed office on May 26, 2014 as more than satisfactory, giving it 7.4 marks out of 10 since the macro outlook of Indian economy improved in terms of growth, inflation, FII front as well as growth of services sector and construction.
 

The investment scenario inched up with FDI equity inflows increasing by about 19% in the last one year while FIIs inflow registering a remarkable increase of 434% and inflation improved since Prime Minister Mr. Narendra Modi became the head of the government.
 

Presiding over the Managing Committee Meeting of the PHD Chamber here today, its President Mr. Alok B. Shriram while commenting on “One Year of the New Government”, however, said that agriculture, industry and core infrastructure continued to witness deceleration due to host of factors as growth rate in agriculture fell to 1.1% in FY2015 against 3.7% in FY2014.  Growth of core infrastructure, on the other hand, declined from 4.2% in FY2014 to 3.5% in FY2015.
 

The President also pointed out that FII inflows which stood at US$8.5 billion in FY2014, accelerated substantially, touching US$45.4 billion in FY2015 though FDIs showed little improvements due to external factors.
 

The Chamber has recommended that reforms so far announced should see their implementation on ground level so that ease of doing business at grassroots is further facilitated.   The co-ordination of the centre with states needs to be cemented for which the central government alone has to take a call.
 

It is of utmost importance that the Government ensures that the existing manufacturing base is not eroded by detrimental steps such as the New Company Act, Environment Laws, Labour Laws etc. The Government must ensure that Commercial Laws should not start carrying criminal penalties as this will scare off investment in an already difficult environment, we reach very much below our target of being 50th in the Ease of Doing Business Index.
 

The Chamber also urged the Government to hold consultations with wider section of trade and industry before framing laws.
 

Implementation of Goods and Services Tax (GST) is of utmost importance for creation of single unified market and Land Acquisition Bill should be passed to enable Prime Minister Modi fulfil his dream of accomplishing extension of reforms for factor markets since so far reforms have addressed the issue of product markets.
 

The country must have patience to allow the Government to pursue and fulfil its economic agenda for atleast 1-2 more years.
 

ENDS.

Koteshwar Prasad Dobhal
Consultant (PR)