Deregulation of Corporate sector important for growth: FICCI

Mumbai, Oct 25 (UNI) Calling for deregulation of the Indian corporate sector, Federation of Indian Chambers of Commerce and Industry (FICCI) president Habil Khorakiwala said more liberalisation would help the Indian economy to grow by 3-4 per cent.

Talking to the reporters here, Mr Khorakiwala pointed out that while the current wave of mergers and acquisitions (M&A) were an outcome of positive regulatory mechanism, out of the country's 3,000- odd Central Statutes approximately 450 were directly or indirectly related with economic and commericial issues which could stifle the growth of the economy.

He said compounding the problem were complex and cumbersome corporate laws that had worked against small and meduim-sized enterprises (SMEs), companies that were winding up and those undertaking M&As.

Highlighting the huge shortage of qualified workforce for the industries, he said according to a study conducted by FICCI, there was a 25-40 per cent shortfall of qualified workforce across 35 industries.

Mr Khorakiwala cited outdated syllabus and general lack in quality of education and institutions as reasons for the shortfall.

Comparing India to China, he said while China has 1,500 universities, India only has 364.

Besides education, he also emphasised on health system and agriculture to meet the demand of a growing population and economy, and called for the need to gradually devaluate the rupee.

He presented a number of recommendations like doing away with redundant corporate rules and regulations, simplifying the monopolistic regulations, Competition Act, SEBI and accounting laws.

He also suggested that the Competition Commission of India (CCI) should be made an autonomous quasi-judicial body with accountability to its stakeholders.

For increasing the number of workforce for the industries, Mr Khorakiwala recommended public-private partnership, stronger implementation of resource flows and privatisation of higher education.

UNI