Concrete steps to boost economy on the anvil
New Delhi: The government is contemplating concrete steps to boost economy even as India Inc stepped up pressure to cut interest rates and bring about clarity in tax laws.
This assurance was given by the government, following series of meetings between captains of industry with Finance Minister P Chidambaram and Commerce and Industry Minister Anand Sharma.
"What can be done is under active consideration. You can expect some firm steps taken by the government. There have been consultations among senior secretaries of the concerned ministries and departments and also between key ministers and the Prime Minister," Sharma told reporters.
The meetings of representatives of India Inc with Chidambaram and Sharma were held a day after Prime Minister Manmohan Singh announced in his Independence Day address that the government would make "every effort to resolve the problems inside our country so that our economic growth and creation of employment opportunities are again speeded up."
According to Sharma, "...In the next three-weeks, there will be decisions by the government which will bring a positive improvement."
During their meetings with the two ministers, India Inc demanded lower of interest rates, investment stimulus and clarity in tax laws to tide over declining manufacturing sector growth and reverse the economic slowdown.
Among others, the meeting was attended by Ficci President R V Kanoria and CII President Adi Godrej. HDFC Chairman Deepak Parekh too held a separate meeting with Chidambaram.
Worsening economic situation has pulled down the index of industrial production by 1.8 percent in June, third fall in four months. The GDP growth fell to nine year low of 6.5 percent in 2011-12.