Assocham suggests programmes to help govt achieve eco growth upto 10%

The action plan also suggests that govt introduce single-window clearance for pending projects, relax FDI limits etc.

Outlining an action plan for the new government, industry body Assocham has pitched for liberalisation of ECB norms, GST implementation, incentives for investments and easing of processes for companies planning to set up manufacturing units.

The action plan also suggests that government introduce single-window clearance for pending projects, relax FDI limits across key sectors, privatise sick PSUs, divest its holding in top 10-15 PSUs to generate over Rs 1 lakh crore of capital, among others.

The blueprint is aimed at achieving economic growth of 9 to 10 % over the medium term and sustaining the high-growth path, it said.

"Policy framework needs to be defined for simpler business regulations to create an environment for investments leading to economic growth. A long term approach to fiscal consolidation is urgently needed along with clear policies addressing structural bottlenecks and high inflation," Assocham President Rana Kapoor said.

The new government must expedite land acquisition and environment clearances for mega projects by setting up a joint task force comprising central ministries like environment, finance, administrative along with the states which can take decisions with a specific time-frame, cutting delays, he said.

Implementation of Goods and Services Tax (GST) can boost India's economy by up to two %age points and replace existing state and central levies with a uniform tax, boosting revenue collection while cutting business transaction costs, Kapoor said.

The industry chamber also recommended cut in excise and service tax rates, abolishing R & D as it discourages foreign investment into India, restoration of the SEZ policy to its original form and greater tax incentives in case of demerger or amalgamation of companies.

It also asked the government to remove tax uncertainty in the minds of foreign investors.