India Inc on hails govt's reform measures

India Inc on Saturday welcomed the reforms measures announced as part of the economic stimulus, saying this will lay the foundation for long term growth, attract private sector investments and create jobs.

The government on Saturday announced an easing of limits on foreign direct investment in defence manufacturing, privatisation of six more airports, opening up of more air space and allowing private sector in commercial coal mining.

Also, the list of weapons that cannot be imported will be expanded to give Make-in-India a boost. The private sector will also be involved in the Indian space programme including in future projects for planetary exploration and outer space travel as well as satellite launches.

Announcing the fourth tranche of the economic stimulus package that largely dealt with reforms and almost negligible new investment, Finance Minister Nirmala Sitharaman said foreign investors would be allowed to own up to a 74 per cent stake in defence manufacturing ventures under the automatic route, up from the current 49 per cent limit.

This would be subject to security clearance norms, she said. Also, the government will expand the list of weapons/platforms banned for imports with year-wise timelines and indigenisation of some imported spares.

This, she said, would boost domestic manufacturing and cut huge defence import bill. To improve autonomy, accountability, and efficiency in ordnance supplies, the government will corporatise Ordnance Factory Board, which will ultimately lead to listing on domestic stock exchanges.

Ficci President Sangita Reddy said the government is turning the coronavirus-induced crisis into an opportunity for India.

"The measures announced today were in the same direction of creating more opportunities for Indian industry and leveraging the strengths of both large business houses as well as startups. These measures will lay the foundation for long term growth and provide impetus to sectors that can help share the future of India," Reddy said.

CII Director General Chandrajit Banerjee said the announcements were focused on investment promotion in a big way in key sectors of the economy.

He said the announcements give shape to the Prime Minister's vision of Atma Nirbhar Bharat for localised manufacturing, reducing imports and boosting employment.

"We believe that the policies announced today would incentivise India's global engagement with more fund inflows and higher competitiveness of domestic industry," said Banerjee.

D K Aggarwal, President, PHD Chamber of Commerce and Industry said the reforms will attract private sector investments and strengthen state of the art infrastructure in the strategic and growth promising sectors of Indian economy, including coal, minerals, defence, airports and aerospace management, power, space sector, atomic energy sector and civil aviation.

The structural reforms will give a big push to industrial and social development in the country and lead to a self-reliant new India with tremendous new employment opportunities for technocrats, skilled, semi-skilled and unskilled workforce in India, said Aggarwal.

"These well thought out reforms reflect that government is well abreast of ground realities. These measures will help steer our economy out of the present situation caused by pandemic COVID-19," saidNaveen Jindal, Chairman, Jindal Steel & Power Limited.