Sidharth Birla, our new President shares some of his thoughts on various issues concerning the economy and India in general.
On Meeting with Hon’ble Prime Minister of India
“…Dr Manmohan Singh asked us to look at trade agreements beyond WTO…..he also asked us to sensitise industry on how to leverage our positions through market access and intellectual property…and that we shouldn’t take a short-term view on such issues. We (industry) have a lot of catching up to do in terms of technical advances in the world…..”
On India’s current taxation scenario
“….Tax adventurism remains a major issue. In an earlier meeting with the PM, I had told him about a case where we have taxed a capital transfer and the amount of tax levied is four times the capital transfer……”
Read more: Tax adventurism remains a major issue: Sidharth Birla, FICCI
On hurdles in Indian economy
“…Industry has been demanding a leash on the financing of fiscal deficit by commercial borrowing as it crowds out companies from the credit market…..”
“….It is not that all these resources are not available in the country. The thing, which has to be worked out, is the speed, and certainty with which resources can be accessed. The government needs to work on co-ordinating between agencies and the state governments to ensure that the supply of these materials is consistent….”
“…Keeping the fiscal deficit in check is an urgent measure that needs to be taken. It will send a strong signal to the industry and instill foreign investor confidence…”
Read more: New Ficci chief lists hurdles
On collaborating with the Government
…..Our stress is on manufacturing as it is central to growth and generating employment. We have suggestive measures for all segments. We believe that inclusiveness cannot be sustained if it is not backed by growth. Infrastructure development is required to improve competitiveness. This is what we discussed with Prime Minister Manmohan Singh who said that we need to think beyond WTO and look at new trade arrangements like the Trans-Pacific Partnership agreement and increased market access. However, our concern is that despite having market access, it may not be profitable because of uncompetitive infrastructure….”
On Cabinet Committee on Investments and fast tracking new industrial projects
“…..Getting clearances is only one part of the growth story to improve the investment climate. Though the impact of environment on development has been an issue, we cannot over stress on either of the two. Changing people is not the solution but putting time limits on decisions is. Interestingly, the cabinet committee on investment (CCI) is now working on the ground implementation of the decisions it took and we feel that the committee should not be a feature of the government as it reflects a failure of other parts of the system.….”
Read more: Getting clearances only a part of improving investment climate
On Contemporary legal framework
“We need laws that are contemporary. We need to review old laws that have reached their sunset point. Our existing laws are good as well. But the time taken to implement them is a big problem.”
Read more: Govt must resolve contentious issues, says new FICCI chief
Appreciate your views and inputs Mr. Birla. I do understand the current priorities like infrastructure, fiscal deficit, growth etc.
But do add this also in a list.
Education system is a conundrum. We have so many institutes, but quality is not at its best. ‘Fresh graduates’ are finding it difficult to have a decent job. Most of them are lacking in soft skills or industry benchmarks, mismatch between actual practical experience and classroom theories – along with low quality teachers especially in tire 2 and 3 cities and small towns.
You do understand that all can’t get into institutes like IIT or IIM.
Today we have an option for tomorrow’s generation. It would not repeat.
Thanks Rutvij, education, especially, higher education remains very much on our agenda. Though it has not been captured in the interactions above, we are very much focusing on keeping higher education in our public policy agenda. Hope you could read our latest – FICCI-E&Y Report on Higher Education: Vision 2030