CII welcomes Economic Survey recommendations

New Delhi, Jul 2: Confederation of Indian Industry (CII)has revealed that the recommendations of the survey are similar to those CII had made in its pre Budget Memorandum and in the report on economic agenda for action.

CII also said that it endorses the agenda fot the reforms set out by the Economic Survey 2008-09 presented by the Finance Minister, Pranab Mukherjee in the parliament on Thursday, Jul 2.

Mr Venu Srinivasan, the President of CII believes that enacting these reforms will effectively enhance the 'growth potential of the economy'.

CII said that one of the key recommendation of the survey such as the tax reforms in terms of removal of FBT, CTT and STT were proposed by it.

Reforms such as the rationalisation of subsidies, disinvestment in public sector units and FDI in insurance and pensions the survey has put forth is welcome, said CII.

“CII looks forward to the revival of disinvestment in PSUs. Not only will it provide funds to the Government but it will drive wider shareholding in key sectors of the economy where the public sector is dominant", said Mr. Srinivasan.

CII, believes that the disinvestment policy will can achieve consistency by fixing a target of raising Rs 25,000 crore annually from this route as proposed by the Survey.

Apart from this, CII expressed optimism on reforms such as raising the FDI in sectors like pension and insurance which will bring in the capital. Survey's advice on reducing the fiscal deficit is also good although the government should not withdraw the stimulus provided too early observing that it is the times of global economic crisis, CII said.

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