Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

’Boosting investor confidence must to arrest decline in investment’

Author: IANS/Wednesday, September 27, 2017/Categories: Government

’Boosting investor confidence must to arrest decline in investment’

New Delhi - Welcoming Commerce Minister Suresh Prabhu's move to convene a meeting with industry associations to discuss issues affecting industrial growth, India Inc said the key lies in boosting investors confidence.

"We submitted to the Minister that the key to arresting the long-term decline in investment rate 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 Federation of Indian Chambers of Commerce and Industry (Ficci) said in a statement.

"The immediate solutions include a reduction in the interest rate, passing this reduction to consumers and investors, and a sharp depreciation of rupee," it said.

The industry body expressed concern that the recent increase in consumption demand is being increasingly met through imports rather than higher capacity utilisation.

"Ficci welcomes the 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. We also welcome the Commerce Ministry's decision to set up an India-China Working Group to address the problem of the huge bilateral trade deficit," it said.

The industry body also welcomed the Ministry's decision to create an Investment War Room to monitor investment in the country.

It urged the government to build a stronger partnership with the private sector so that the latter once again becomes a driver of growth and a generator of employment in the country.

Another industry body, Confederation of Indian Industry (CII), said that at this juncture, an extra nudge is desirable to boost both growth and growth sentiments.

"The four main areas that need attention are investments; exports; Micro, Small and Medium Enterprises (MSMEs); and employment," CII said. 

Its suggestions included reduction of interest rates by 100 basis points over the next year to spur consumption, relaxation of fiscal consolidation targets for a year or two, discouraging state governments from curtailing capital investments, lowering corporate tax to 18%, simple framework for claiming input tax credit and expansion of coverage of Goods and Services Tax (GST) to include electricity, oil and gas, alcohol, and real estate.

For exports, it suggested allowing commercial banks to lend more to Small and Medium Enterprises (SMEs) exporters and expand interest rate subvention from 3% to 4%.

"There is a need to reduce pressure on working capital of MSME for various reasons such as GST and contract terms. Increase the time, especially for SMEs, for payment of taxes and duties under the GST. Create capital insurance scheme to protect MSME against delayed payments. Encourage alternate sources of lending, especially to MSMEs, like securitisation of exporters' receivables," the CII said.

It also suggested to reinstate fixed-term employment for all manufacturing sectors, the statement said. 

Print Rate this article:
No rating

Number of views (168)/Comments (0)

rajyashree guha

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free