New Delhi : Industry body Confederation of Indian Industry (CII) on Friday said the government’s maiden year performance has exceeded its expectations and the recent reforms introduced by it have the potential to propel India’s medium-term growth to 9-10 percent.
“CII believes that India’s GDP (gross domestic product) can grow at 9-10 percent in the medium term with such a multi-pronged reform strategy,” said Sumit Mazumder, CII president.
The latest Economic Survey has indicated that the GDP growth rate at constant market prices is likely to be in the range of 8.1-8.5 percent in 2015-16, he added.
The GDP grew at 7.4 percent in 2014-15.
Commenting on the first year of the Prime Minister Narendra Modi’s government, Mazumder said: “Government has exceeded our expectations and has achieved more in the first year than any other government has achieved in their first year.”
According to Mazumder, the Modi government’s stress on good governance, tax administration for a non-adversarial, corruption-free and predictable policy regime has greatly buoyed investor sentiments.
“Strong action to pass critical bills through parliament, rapid rollout of campaigns for financial inclusion, social security and direct transfer of subsidies, initiatives in power, coal and mining sectors and so many other areas have imparted huge credibility to the government,” Mazumder said.
The industry chambers pointed that empowerment of state governments with more policy flexibility and revenues would enable tailored policies according to diverse resources.
The industry chamber cited that Prime Minister Modi’s personal interventions to attract FDI (foreign direct investment) are resulting in concrete projects and outcomes.
“The government’s emphasis on lower tax rates and introduction of GST (goods and services tax) in coming years will greatly enhance competitiveness of the Indian Industry,” Mazumder elaborated.
The industry chamber added that the wide range of quick reforms across sectors has given out clear signs of recovery and that the country is already the fastest growing large economy in the world.