New Delhi: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has prescribed two pronged strategy to help India grow at double digit rate by 2014 for which a consistent emphasis would have to laid to achieve over 15% and 4% growth in manufacturing and agriculture.
The suggested move would create thousands of direct and indirect jobs and push India grow at 10% growth rate after 11 five year plan period terminates in 2012 by which times India will have surpass GDP growth projections of 9%, feels the ASSOCHAM.
In its proposal to the government, sent by ASSOCHAM, it is felt that consistent growth of over 15% in manufacturing is feasible since Indian economy has started doing reasonably well and is expected to clock a GDP growth of over 8.5% in fiscal 2009-10. The contribution of manufacturing in it would be substantial, pointed out the ASSOCHAM adding that it will continue to do well as a result the growth rate for current fiscal is likely to be around 9%.
Likewise if India is able to accelerate its agriculture growth as projected at level of 4% in next tow years which is possible because of anticipated good mansoon and promised reforms in agriculture, it won't be difficult for India to move on the growth trajectory of 10% beyond termination on 11th five year plan period.
According to the chamber, core sector including infrastructure has started doing well excepting hick ups in petroleum, power, coal etc. These might contribute to restrict growth prospects of Indian economy in years to come in case corrective measures are not taken up, cautioned ASSOCHAM.
On agriculture front, the ASSOCHAM has emphasized pace of reforms will have to be further accelerated, particularly by ensuring variety of seeds and increasing land fertility for which agriculture ties would have to be formed to enable india access technological up gradation in the field of agriculture and horticulture. Irrigation facilities would have to be added through higher allocations from Central Pool with initiatives arising from Planning Commission since irrigation is largely dominated by state governments.
It also added that in order to ensure competitiveness of the industries, friendly policies need to be taken so that the industries can go in for intensive research and development programmes and infuse new technologies.
Apart from this, it needs to be monitored that the existing projects are being carried out efficiently. The States must be involved in the process. Investments need to be made in the power sector through public private partnerships and appropriate reforms.
The growth momentum will automatically move on towards double digit as projected by the ASSOCHAM provided flawless goods and service tax is put in place and implemented latest by April 2011 since promised tax structure will remove distortions and inefficiency in administration of taxation. The Direct Tax Code (DTC) should also be as per anticipation as current income tax system provides for loopholes which cause restrain in the growth of economy.
In addition, the chamber has urged for incentivising exports to help India grow its external engagements, especially in rewarding corners such as Latin Amerrica, and African continent.