Business Standard

India Inc welcomes optimism shown in Economic Survey


ANI New Delhi [India]
Industry players from different sectors welcomed the optimism shown by the survey, while raising concrete demands for their respective sectors, to realise the desired economic growth at the rate of 7-7.5% of GDP in FY 2018-19.
Desi Valli, founder and CEO of Netree, emphasised, "With the increased push to digital transactions and ease of doing business, the retail industry will have a robust growth and bright future. A mention about the optimism on account of private investment, in the economic survey 2018, is a positive projection for the retail industry." Netree, India's leading retail engagement platform and the world's first connect-engage-promote-transact platform for retailers, has high hopes on account of projections vis a vis investments, as funding is the lifeblood of start-ups.
Speaking on the agriculture growth and retail connect, Desi said, "As more than 90% of the retail business is still in the hands of 'small' retailers, the reported good agricultural growth will provide a boost to GDP." Desi appreciated the government's move to keep the fiscal deficit at a moderately low level.
In a reference to key interest rates, Desi raised concern by saying, "August survey had stated that there was considerable scope for monetary policy easing. However, the RBI did not ease the lending rates. As the retail industry needs easy credit for expansion and growth, the concerned authorities must review the lending rates."
Hemalatha Annamalai, South Chapter Chief, SMEV and CEO & Founder Ampere Electric Vehicle Pvt Ltd said, the survey reflects that the economic growth will return to normal as GST has now been integrated well with the EV companies and currency notes in required quantities have come back into circulation. The survey indicates robust manufacturing led growth with focus on more employment generation.
Hemalatha said, "The survey adds to the positive wave and energy that EV industry was looking forward to, to revive the sentiments, to push the market in the wake of enhanced industrial activity and the government's resolve to promote 'Make in India' and ease of doing business."
She congratulated the farmers who have had been constantly expanding on the acreage area as Rabi cropping reported robust result. The good crops would help expand the EV industry market to grow for the poor and middle income groups especially in sub- urban and rural India, she emphasised.
While making an appeal to the government with regards to GST, Hemalatha said, "I urge the government to reduce GST rate to 5 per cent on all electric vehicles and electric vehicle subsystems. For the companies to see a lucrative business opportunity, the upcoming finance budget FY 18-19 will be a barometer for the future direction. The sector will be keen to get a clearer picture around the development and deployment of related infrastructure like charging stations, measures to encourage public-private partnership apart from incentives for research and development, and 'Make in India', especially for the lithium- ion battery."
Social development sector appeared equally excited as the survey also noted that India is poised to grow as one of the leading knowledge economies where education, skill development and health will remain priorities for the Government.
Anuja Bansal, Secretary General, SOS Children's Villages of India, emphasised, "We are pleased to learn that the government will be placing consolidation and mending of the social infrastructure on its priority list. We do need a stronger education, health and employment infrastructure for the country's children, to be able to reap the benefits of the demographic dividend at hand. Addressing the well-being of women children and youth will steer us in the direction of achieving the desired GDP targets."
"A report, recently tabled at the World Economic Forum, highlighted the rising income inequalities in India. In this backdrop, a commitment from the government to focus on social infrastructure is a welcome step. We are hopeful that the ensuing union budget will reflect the same, and will have more for the social sector to look out for," added Bansal.

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First Published: Jan 29 2018 | 5:20 PM IST

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