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Inflation challenge, but remarks of PM reassuring, say industry bodies
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Saturday, 04 January, 2014, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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fiogf49gjkf0d When India’s prime minister, Dr Manmohan Singh, remarked that the worst was over for the economy and the policy actions taken by the government would lead to a pick up in growth momentum going forward, industry bodies felt assured. In fact, the Confederation of Indian Industry (CII) stated that its own Business Confidence Index indicated that a revival may be on the cards for the country’s economy, going by the perceptions of industry captains.
However, Sharad Jaipuria, president, PHD Chamber of Commerce, highlighted the growing concerns of inflation and corruption, which demand urgent attention. He stated that they would help the economy to revive growth in the coming times, and suggested that the government tackle the problem of supply-side constraints, not only for a shorter period, but for a longer period as well, and formulate strategic plans considering that India is domestic consumption-driven; supply constrained, and a long-term growth story.
CII
Chandrajit Banerjee, director general, CII, said, “What is also commendable is the passage of several important bills in Parliament, which set off the reforms agenda and contributed immensely towards rekindling investor confidence. It is also noteworthy that the number of people below poverty line has come down in the last nine years. CII agrees with the prime minister that a turnaround in manufacturing has yet to be achieved, while the persistence of inflation continues to be a problem.”
“We also concur that an increase in food supplies, as also improved marketing and logistic support, are crucial to rein in inflation, especially that which pertains to food prices. Moreover, the confederation shares the prime minister’s concern about the challenges to job creation, particularly on the manufacturing front, and believes that a concerted effort is required to revive the sector, with special emphasis on job creation,” he added.
PHD Chamber of Commerce
Meanwhile, the PHD Chamber reiterated that given the state of the economy, India was a promising long-term growth story. “Despite various national and international vulnerabilities, the growth rate achieved during the last nine years has been encouraging,” said Jaipuria, adding that the chamber believed that the focus of the government, which is to revive the economic growth on the high road once again, would remain intact going forward.
“The prime minister’s focus on generating employment in the manufacturing sector and highlighting the importance of small and medium enterprises, which could be a major source of good-quality employment, is very heartening; as to exploit the full job potential, emphasis must be laid on manufacturing, and hence there is an utmost need to enhance the skill development activity at a much faster pace,” he stated.
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