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The Confederation of Indian Industry (CII) on Wednesday asked the Uttar Pradesh government to encourage the manufacturing sector, for faster economic development in the state.
CII Northern Region Chairman Zubin J Irani said growth would not happen without investment, especially in the manufacturing sector. He said states were competing among themselves for securing the larger share of investment and foreign direct investment (FDI). Investments would flow to the state that offers the best policy and has an enabling business environment, he said at a conference call here.
Irani expressed concern over project delays and investments stuck in projects due to various reasons. Irani said the growth rates of Uttar Pradesh and Punjab, among the largest northern region economies, have been lower than in their neighbouring states.
He was in town to unveil the CII agenda for 2014-15. The CII delegation also met senior state industry department officials.
In the context of Uttar Pradesh, he said there was an urgent need for improving the “ease of doing” environment, apart from skill training of industrial workforce and providing better infrastructure, such as power, to industry. “This, in fact, applies to other states as well,” Irani said.
Replying to a question here, he said the perception about business environment in India had turned positive in recent months and decisions are taken faster. “However, we have to be realistic and patient about growth rate, as the economy would take some time to rebound and get back to the high-growth trajectory.”
He listed inflation, fiscal deficit and current account deficit (CAD) as biggest challenges before the Narendra Modi government going forward.
