New Delhi, Feb 27 (IBNS) The Associated Chambers of Commerce and Industry of India (ASSOCHAM) is one of the apex trade associations of India, on Wednesday appreciated the 'apt assessment' made by the government that economic slowdown is a wake-up call for stepping up reforms.
Chamber president Rajkumar Dhoot said while finding the review presented by the Economic Survey in the right direction differs with it as regards the seriousness of the issues faced currently and steps to be taken for addressing them, particularly, realizing that a growth rate in excess of 6% in the current situation requires a major policy boost for business sentiment.
"First, as against the review made by the Economic Survey economic performance is yet to see the bottom and recovery remains elusive. Given the challenging internal and external conditions, revival of growth requires government initiative to announce a stimulus package as was done in 2009," said Dhoot.
"Manufacturing is turning out a lost opportunity to India. Its poor performance further impacts the performance of traditional services. The present indifferent growth in manufacturing coupled with poor agriculture performance would further affect the growth prospects of services sector," he said.
"The public finances of Government of India are already in a bad shape as also reviewed by the Economic Survey. Therefore, the Union Government must seriously initiate process reforms that help remove infrastructure bottlenecks, bureaucratic delays, bring clarity to government policies as well as their effective implementation.
"The government must also identify a list of doable short term policy interventions and prioritize their implementation instead of concentrating its energies on big ticket policies, said Dhoot.
The ASSOCHAM chief said states need to take initiative to boost economic activity by streamlining policies and announcing fiscal stimulus measures.
Indian economy is likely to grow between 6.1 percent to 6.7 percent in 2013-14, as per the Economic Survey 2012-13 tabled in the Parliament on Wednesday.
Following the slowdown induced by the global financial crisis in 2008-09, the Indian economy responded strongly to fiscal and monetary stimulus and achieved a growth rate of 8.6 per cent and 9.3 percent respectively in 2009-10 and 2010-11, but due to a combination of both external and domestic factors, the economy decelerated growing at 6.2 percent and an estimated 5 percent in 2011-12 and 2012-13 respectively.
The Economic Survey 2012-13 was presented by Union Finance Minister P. Chidambaram in the Lok Sabha predicts that the global economy is also likely to recover in 2013 and various government measures will help in improving the Indian economy's outlook for 2013-14.