New Delhi: CII Chairman R Dines on Thursday said the Center and states need to come together to pursue major reforms in the labor and land sectors to accelerate growth.
He further said, in a survey by CII, Reserve Bank of India expects benchmark interest hike in the second quarter (July-September). RBI is keeping the repo rate at 6.5 percent from February 2023.
In an interview with PTI, the CII President shared the industry body's perspective on the reforms needed to fully realize India's growth potential.
“From CII's side when we look at accelerating growth or ensuring that we are able to take advantage of the opportunities that are being presented today, broadly we are talking about 3-4 sectors “First of all you look at large-scale reforms which are land, labor and to some extent agriculture,” Dinesh said.He highlighted the importance of building consensus across all states.
Towards this end, he said, CII has suggested a structure that could allow the Center and states to work together to work on large-scale reforms. A "GST-type federal structure" could force the Center and states to work together for large-scale reforms.
Elaborating on capital expenditure by the private sector, Dinesh said however its percentage has remained the same, and the CII survey on capacity utilization has shown that the level across all key sectors is estimated to be above 75 per cent.
“If you look at private capex, I think it is important for us to understand that the percentage of private capex remains the same… We are between 36-37 per cent, so that is what is happening, it is not that There is absolutely no way that the growth rate of capital expenditure cannot be the same as the growth rate of government expenditure,” Dinesh said.Emphasizing that the RBI is managing the balance between inflation and growth needs of the country "very right and well", the CI chairman said, "As an industry body we conducted a survey where we looked at That hopefully by the second quarter of FY 2025 you will actually see interest rates coming down".
He further said, in a survey by CII, Reserve Bank of India expects benchmark interest hike in the second quarter (July-September). RBI is keeping the repo rate at 6.5 percent from February 2023.
In an interview with PTI, the CII President shared the industry body's perspective on the reforms needed to fully realize India's growth potential.
“From CII's side when we look at accelerating growth or ensuring that we are able to take advantage of the opportunities that are being presented today, broadly we are talking about 3-4 sectors “First of all you look at large-scale reforms which are land, labor and to some extent agriculture,” Dinesh said.He highlighted the importance of building consensus across all states.
Towards this end, he said, CII has suggested a structure that could allow the Center and states to work together to work on large-scale reforms. A "GST-type federal structure" could force the Center and states to work together for large-scale reforms.
Elaborating on capital expenditure by the private sector, Dinesh said however its percentage has remained the same, and the CII survey on capacity utilization has shown that the level across all key sectors is estimated to be above 75 per cent.
“If you look at private capex, I think it is important for us to understand that the percentage of private capex remains the same… We are between 36-37 per cent, so that is what is happening, it is not that There is absolutely no way that the growth rate of capital expenditure cannot be the same as the growth rate of government expenditure,” Dinesh said.Emphasizing that the RBI is managing the balance between inflation and growth needs of the country "very right and well", the CI chairman said, "As an industry body we conducted a survey where we looked at That hopefully by the second quarter of FY 2025 you will actually see interest rates coming down".
