The Federation of Indian Chambers of Commerce & Industry(FICCI) welcomes the initiative taken by the Union Minister of Commerce & Industry, Shri Suresh Prabhu to convene a meeting with Industry Associations to discuss issues effecting industrial growth.
FICCI submitted to the Minister that the key to arresting the long term decline in the rate of investment, from over 35% to below 30%, lies in boosting investors’ confidence in the country’s medium term growth prospects and overall environment for doing business. The immediate solutions include a reduction in the interest rate, pass through of this reduction to consumers and investors, and a sharp depreciation of the Rupee. FICCI expressed concern that the recent increase in consumption demand is being increasingly met through imports rather than higher capacity utilisation. FICCI welcomes the Industry Minister’s announcement that a Regulatory Review Committee will be set up to examine how regulatory institutions may be coming in the way of increased investment.
FICCI also welcomes the Commerce Ministry’s decision to set up an India-China Working Group to address the problem of the huge bilateral trade deficit. FICCI also welcomes the Ministry’s decision to create an Investment War Room to monitor investment in the country. FICCI urge the Government to build a stronger partnership with the private sector sothat the private sector once again becomes a driver of growth and a generator of employment in the country.