Industry sees signs of revival: CII
"The focus areas of CII this year would be on revival of economy, fast tracking infrastructure and improved Governance,” emphasised Mr Venu Srinivasan, President, Confederation of Indian Industry (CII) in Chennai. He said that some signs are emerging that the economy is stabiliing but acknowledged that India faces many challenges. In particular, he said that the challenges of building infrastructure and addressing governance issues are key. CII would like to highlight these areas in its policy work in the current year, he said.
The global economy is expected to bottom out in 2009 and revive in 2010 according to IMF's World Economic Outlook, January 2009 with India expected to register 6.5% growth in 2010. The GDP growth registered a decline to 5.3% during the third quarter of the current year, 2008-09 with agriculture and manufacturing registering negative growth. "The decline in growth in manufacturing is a cause for concern that we have been flagging for some time now due to its multiplier effects on the growth of the services sector,” said Mr Srinivasan.
In the manufacturing sector, CII would stress the importance of achieving a higher share in GDP for this sector. The manufacturing sector is key for providing jobs to the large number of semi-skilled persons entering the work force every year. To achieve this, it is imperative to reduce the competitive disadvantages faced by Indian companies in relation to power and transportation infrastructure, said the CII President.
Addressing the need for good corporate governance, Mr Srinivasan said that CII would take active measures and support capacity building rather than increasing rules and regulations in governance. "Corporate governance needs to be instilled in enterprises at an early stage of their development. There is need to work with promoters and first-time entrepreneurs to encourage and support their initiatives in governance", stressed the CII President. He also stated that India should now look at exploring markets in Brazil, Africa, Latin America and ASEAN countries, thus engaging more with the rising southern economies of the world, along with continued interaction with western countries such as US, UK, France and Germany.
Source: CII