India to grow at 8 pc in 2016-17: Industry body

06 April, New Delhi

Lauding the government’s strong reform agendas, the industry body today pegged the country’s GDP growth rate at around eight per cent for this fiscal, which is a bit higher than the RBI’s estimation of 7.76 per cent.”Strong macroeconomic fundamentals, favourable business sentiments, and downward trend in interest rates are significant positives for the economy.

CII estimates that Government infrastructure investments and increased investments from the private sector will boost GDP growth to the 8 per cent range,” said Naushad Forbes, President, Confederation of Indian Industry (CII).

Giving an example of countries, including Japan and Korea, Forbes stressed, “No country has grown without rapid increases in productivity at all levels, including human resources, capital and innovation. India must accelerate its productivity attainments through strategic interventions on building human talent, quality and technology.”He also said the employment generation and entrepreneurship are imperatives to address inclusiveness of the growth process.

Forbes observed that the initiatives like ‘Standup India’ would create new opportunities for inclusive growth. However, he cautioned over external factors and said that the external demand situation would have to be closely watched. A flat corporate performance, fiscal pressure from the Seventh Pay Commission and potential increase in oil prices in the coming year would be further risk factors.

The new CII president lauded the government for its strong reform agenda and highlighted further areas to be addressed at the policy level to enhance competitiveness. He urged for the quick passage of the Constitutional Amendment to introduce the Goods and Services Tax, adding that this would make India a single market and reduce transaction costs.

The Bankruptcy Bill and a uniform public procurement policy are further items on the legislative agenda. States should consider amending their labour regulations and land acquisition processes to create a better investment climate, stressed Dr Forbes.