New Delhi: Resolution of problems related to natural gas production at the Krishna-Godavari basin and re- farming of telecom spectrum are necessary to revive India's economic growth, industry body Assocham said today.
Power plants and fertiliser units are not able to operate because of the shortage of natural gas, it said, adding that gas pricing and production issues related to the KG basin must be tackled quickly to address fuel shortages facing these crucial sectors.
Besides, Assocham said, there is a need to revive investments in the infrastructure sector.
"The sector suffers from its inability to raise huge finances which are required for power projects, roads, ports and airports and exploration of hydro-carbon reserves," the industry body said.
"For revival of the investment in the infrastructure sector uncertainties in policies must be cleared at the earliest," it added.
Assocham has also called for early resolution of spectrum related issues facing the telecom sector.
Refarming (or reallocation) of airwaves has been recommended by telecom regulator Trai. It has said that existing operators give up the spectrum in 900 MHz band when their permits come up for renewal starting November, 2014.
The operators will be given the option to buy replacement airwaves in the 1800 MHz band, believed to be less efficient.
On the macro-economic situation, Assocham has said that the Reserve Bank needs to reduce interest rates to boost investments in the sagging economy.
"For tackling issues like high inflation, the monetary and fiscal authorities must also work in tandem," it said, adding that handling inflation in the middle of slowdown remains one of the biggest challenges for regaining the growth momentum.
Assocham has suggested free movement of agriculture commodities and support to various industries in augmenting the supply of goods and services for reducing the inflation.
Besides, it said that in the forthcoming Budget 2013-14, the government should aim at spurring growth rather than enhancing revenues.
"The forthcoming Budget should primarily aim at growth and not on revenue generation to the exchequer," it said, adding that the growth of the economy will naturally result in higher revenue for the government, thus bridging the fiscal gap considerably.