Govt needs to speed up implementation of reforms to push economic growth: Survey
The survey also stressed on the quick implementation of the announcements in the budget especially in the infrastructure space, boosting export competitiveness and addressing the issue of delayed payments.
Government needs to speed up implementation of GST, address the issue of cheap imports and improve investment climate as majority of sectors are witnessing 'moderate' growth, says a Confederation of Indian Industry (CII) survey.
The survey, which tracks the growth of economic sectors on a quarterly basis, also stressed on the quick implementation of the announcements in the budget especially in the infrastructure space, boosting export competitiveness and addressing the issue of delayed payments.
Overall, the current trends reveal that majority of the sectors are continuing to witness 'moderate' growth trends with 'excellent' and 'high' growth limited to some sectors, it said.
However, a decline in the share of sectors registering 'low' growth is clearly an indication towards the bottoming out of growth trends in the majority of sectors.
"Going forward, on the back of the various measures and structural reforms taken by the government, it is expected that the current momentum would be supportive of the revival becoming broad based in the coming quarters," it said.
It said key economic reforms like goods and services tax (GST), land acquisition, labour laws, public procurement policy will add to improving the business environment and also play a big role in investment decisions.
To further support the 'Make in India' initiative, there is a need to strengthen anti-dumping laws to protect local manufacturing and provide subsidies on production of major raw materials of key export products to make them cost competitive, it said.
"Increasing tax credit and providing tax deduction for research and development (R&D) would provide a competitive edge to several sectors involving R&D. Tax incentives would significantly help small companies, which face a difficult task of acquiring credit from banks," the CII-ASCON survey said.
To further push the pace of recovery in economic growth, the respondents to the survey have suggested several broad measures including "need to speed up reforms, focus on implementation and improving investment climate".
The survey stated that while a majority of the sectors are still continuing to witness 'moderate' growth rates of ( 0 to 10%), 'excellent' (less than 20%) and 'high' (10-20%) growth are limited only to few sectors.
Moreover, there has been a sharp decline in the share of sectors registering 'low' growth.
Out of the 102 sectors surveyed including crude oil, cement and natural gas, the share of sectors registering 'excellent' growth has remained constant during the fourth quarter (Q4) of 2015-16.
However, the share of sectors witnessing 'high' growth has surged substantially to 20.6%.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
02:52 PM IST