ASSOCHAM seeks wider political support for key reform measures

"The business confidence has certainly improved in the last six -seven months, but this confidence now needs to get translated in the project delivery, kick starting the investment cycle and boosting consumer demand. Political consensus among the mainline parties at least on the issues of national importance is a must for taking the economy forward and be counted among the vibrant economies of the world," Kanoria said after the ASSOCHAM Managing Committee meeting in Kolkata.

West Bengal Finance Minister Dr Amit Mitra graced the occasion and heard the ASSOCHAM leadership on issues of concerning the state, nation and the prevailing international scenario.

Kanoria said to build on the improved business confidence, certain key legislations need to get passed in Parliament for which wider political consensus is required. The GST Constitutional Amendment Bill can be brought about and proceeded further only if states and parties ruling there all come to a common platform and resolve their differences.

Likewise, the passage of the Insurance Bill will send a big positive signal among the global investors who will feel assured that India is a place to be in.

Referring to the Make in India programme of the Central Government, the ASSOCHAM said the manufacturing in the country can pick up only when the Land Acquisition Act is amended to make it easy for the industry to acquire land from farmers who certainly deserve a good deal.  But the law must have  provisions which are practical to follow. Under the present dispensation, it is next to impossible to acquire land for industrial projects, more so in the private sector.

He appealed to West Bengal Chief Minister  Mamata Banerjee to support the amendments in the law and boost manufacturing .

They discussed issues like continuance of high interest rates despite inflation touching benign levels, although expectations were voiced about the cost of borrowing coming down next year.

The ASSOCHAM top leadership also reviewed the low credit off-take from the banks which are becoming cautious in lending in the wake of a high level of about six per cent NPAs.  Several sectors like the real estate and aviation continue to face rough weather whereas bankable projects are not forthcoming for crucial infrastructure projects like highways.

Despite positive vibes, there are huge challenges which need to be overcome with the help of the country's political leadership, it said.