Innovation, reforms needed to spur economic growth: CII
Mumbai: Reforms in governance as well as innovation across businesses needed to bring the slowdown-hit economy back to higher growth rate trajectory, industry body CII said Monday.
The economy can clip at 6-6.5 percent this fiscal and can be expanded to 8-9 percent in the next few years if the Government is able to carry on with reforms and companies continue to innovate, CII's newly-elected President S Gopalakrishnan said here.
"In 2013-14, we expect (GDP) growth in the 6-6.5 percent range. We are hoping it will be on the higher side and beyond 2013-14, we are looking at going back to 8-9 percent over a period of time," he said.
Calling for lower interest rates, the CII chief said he expects 100 basis points (1 percent) cut in interest rate over the next 12 months and 50 bps (0.5 percent) in the next two months. "This will kick start investments."
Gopalakrishnan, who is also Executive Co-Chairman of IT major Infosys, said the Government needs to revive stalled projects, especially in the infrastructure sector.
"The Government needs to look at stalled projects in terms of the investment incurred and work on their revival on a priority basis. We have already submitted a list of such projects," Gopalakrishnan said, adding the government should increase FDI in sectors like insurance and banking.
He said there is an urgent need to focus on reforms and governance, inclusive growth and affirmative action, innovation entrepreneurship and growth of MSMEs, transformation of sectors to accelerate growth.
Pressing for electoral reforms, Gopalakrishnan said CII is approaching all political parties to ensure that growth momentum in the country continues.
For agriculture, he suggested reforms to incentivise implementation of the Model APMC Act.
On the CII's agenda for innovation, he stated the private sector investment in R&D, innovation and design needs to increase significantly.