The long run prospect of Indian economy is very strong and bright: Dr Naushad Forbes, President, CII

 India will continue to be one of the top 10 fastest growing economies of the world : Dr Naushad Forbes, President, CII

 by Suman Gupta

The long terms prospects of Indian economy is very strong and bright said Dr Naushad Forbes in a press conference organised by CII today. In CII budget recommendations Dr Forbes said that the focus has been on how to encourage and improve private investment as most of the indicators are looking up except for the private investment. Therefore, we need to work on a strategy on how to get private investment flowing into the economy, he said.

 CII suggested that the government should draw up a plan and a strategy of disinvestment of 100 public sector units and work on revitalisation of the current PPP projects. He also suggested that 100 railway stations can be developed in PPP mode in line with the models followed in Japan and Germany. These are the short term recommendations and in the medium term, he suggested that the focus should be on employment generation with quality jobs being created wherein the security for labour and flexibility for employer are both addressed.

In the long term, CII suggests that the focus should be more on science and technology and research and development. Currently, the R&D spends of industry is 0.3% of GDP whereas global average is 1.5%. Thus 5 times growth in R&D investment by industry is warranted. Public research also needs to grow by 10 times, he said.

CII suggests reduction of corporates tax to 18% and let there be removal of all tax exemptions and grand fathering provisions. This should help in increasing the disposable income into the system thereby creating demand for investments to kick in.

Demonitisation is a welcome move from the long term perspective. He suggested that with 86% of the cash being removed from the system, printing of currency overseas could be explored to meet the rising demand. There is a need to print many Rs. 500 notes for effective use of Rs. 2000 notes, he said.

Dr Forbes was highly appreciative of initiatives taken by CII Marathwada zone in connecting industry members for a social cause thereby connecting industry and society for the overall growth and development of the zone. 

He was highly appreciative of the initiative taken by the CII members for the eco restoration of the Kham river, where he visited earlier today. He also highlighted the initiatives taken up in 6 drought prone districts of the Marathwada region to address the issue of water scarcity. He highlighted that CII Centre of Excellence on Water is working on a Watscan project which is being under taken in districts of Aurangabad, Jalna, Beed, Latur, Osmanabad and Nanded.  

He also said that CII is working very closely with the local authorities and the state government officials on other projects as well. CII would bring in national initiatives to promote tourism in Marathwada, Dr Forbes mentioned.

Earlier Dr Naushad Forbes addressed the Indian Women Network Aurangabad chapter recently launched by CII in Aurangabad. He also addressed the CII members during the day.