Indian economy to grow despite challenges: CII President Rakesh Bharti Mittal

Mittal highlighted the reforms over the past four years and further stated that Goods and Services Tax (GST), Insolvency and Bankruptcy Code were the most relevant reforms.

Published: 13th June 2018 07:55 AM  |   Last Updated: 13th June 2018 07:55 AM   |  A+A-

Mittal said that the CII was contemplating setting up of a very large asset reconstruction institution or a 'bad bank,' which would help clean up the banking system of the stressed assets. (Rakesh Bharti Mittal | Twitter @CIIPresident)

By ANI

Mumbai: Confederation of Indian Industry (CII) President Rakesh Bharti Mittal on Tuesday predicted a 7.3-7.7 percent growth in 2018-19 in spite of challenges in the global economy.

He said, "CII predicts 7.3-7.7 percent growth in 2018-19 and expects it to strengthen further in the few years to come. This in spite of some challenges in the global economy, including hardening of interest rate regimes, volatility in oil prices, etc."

Mittal highlighted the reforms over the past four years and further stated that Goods and Services Tax (GST), Insolvency and Bankruptcy Code were the most relevant reforms that would change the way business was done in the country.

The CII President said that the state governments working proactively on ease of doing business were getting better investments and business interest and the Government of India's ranking of states played a good role in that.

Responding to a question on how the large non-performing asset (NPA) accumulation should be dealt with, Mittal said that the CII was contemplating setting up of a very large asset reconstruction institution or a "bad bank," which would help clean up the banking system of the stressed assets and allow for unfettered credit flow.

Speaking on the credit growth, the CII President said that this was the most welcome feature. However, he added that many small and medium enterprises (SME's) were still struggling to get credit and even when they did, their cost of credit was high, making their business operations difficult.

On job creation, Mittal went on to say that while new jobs were created in the formal sector itself, there were many more created in the informal sector and those were not being tracked. As an example, he mentioned that huge growth in MUDRA loans, which indicated the livelihood creation in sectors, that were mostly out of the statistical radar.

On greater inclusion as an agenda for the industry, the CII President mentioned that corporate social responsibility (CSR) activities would be a focus for CII this year.

On the farm sector, Mittal said that the news of the government planning to launch ranking of states on agriculture reforms was a great one.

In order for the government to achieve its target of doubling farmers' income, the focus needed to be on rural infrastructure, land/ power reforms, water management, micro-irrigation, moving to high-value crops, farmers' freedom to sell directly food processors/ retailers in addition to APMC markets. These would lead to large-scale private sector investments and increase in farmers' income, he added. 

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

facebook twitter whatsapp