releasing “Economic Outlook 2013-14” recently. The Indian economy will grow at 5.3% as per projections for the current fiscal (2013-14). Here are some of the growth-friendly measures taken over the last year, according to a statement issued by PM’s Economic Advisory Council.
a) Liberalizing FDI investment norms
b) Resolution of some tax issues of concern to industry
c) Fast-tracking of public sector investment: focussed attention on coal, power, road, railways
d) Initiating construction on the dedicated freight corridor
e) Cabinet Committee on Investments (CCI) set up to fast-track/debottleneck key projects: 209 projects (with an aggregate investment of Rs 384,203 crore) cleared
f) Mid-course corrective measures to contain fiscal deficit
g) Improved investment policy regime across a number of sectors like sugar, urea, gas, roads, banking, etc.
h) Accelerated parliamentary approval of pending bills
The following were the medium to long-term measures, for boosting growth.
a) Improving manufacturing capabilities
b) Improving domestic supply chains
c) Addressing specific tax issues in sectors like electronics
d) Facilitating productivity shift through assured supply of skilled labour
e) Encourage ease of doing business by streamlining procedures
Why should Foreign Investments come?
a) Stable, non-reversible policy regime
b) Early resolution of transfer pricing issues
During the last couple of years, the government has banked on cash-rich public sector biggies to spur growth. Cabinet secretary has had a several meets with CMDs of various sectors to spot the bottlenecks of investment including difficulties in getting environment clearances. Finance ministry bureaucrats too are banking on investments by top PSEs to help India retain five percent plus growth rate.