Reforms making economy robust: CII chief

Sanjeev Sharma

Tribune News Service

New Delhi, April 26

Confederation of Indian Industry (CII) president Rakesh Bharti Mittal has said that the government has initiated reforms such as Goods and Services Tax (GST), fixed-term employment and Aadhaar which are moving economic activity from the unorganised sector to the organised sector.

Mittal, while giving his assessment of the government’s economic policy, said, “I believe that the Modi government has brought in a number of economic reforms as well as social policies that will go a long way in making India a more developed and robust economy.”

“Reforms such as GST, fixed term employment and Aadhaar will encourage economic activity and employment to move to the organised sector,” he said.

The CII President said reforms such as involving the private sector in farming are needed. Long tenure leases should be permitted making sure that ownership right is not alienated and that the tenant has no claim to the land. This would enable the private sector to lease large tracts of land and invest in scientific farming. The income of the farmer would go up by 40-50 per cent. 

“A reform is also required on the food retailing segment where 25-30 per cent of non-food items need to be allowed for retailers to be viable,” he added.

On whether there is disquiet in the industry over the impact of the disruptive reforms like GST and demonetisation, Mittal said, He said that any short-term issues with GST are being taken care of through discussions between industry and the government. The CII will continue to ask for simplification of the filing process, rationalisation of the number of rates and bringing all four excluded items, including electricity, fuel, alcohol and real estate, under the GST regime.