Just as the political parties are slogging it out in electioneering, India Inc's top leadership and economists today held a brain-storming session at Assocham to conclude that India will need a decisive government at the Centre with a sharp focus and capable of pulling the economy out of the slow motion to a faster lane by taking bold decisions.
At an Interactive Session on expectations from the new government, Assocham president Rana Kapoor described the Indian economy as a ''super like a super star cricketer who is injured and he cannot play in the finals. We are waiting and pausing for revival. We have not seen structural reforms for the past two/three years''. He said, while the world is suffering from demand slowdown there is a potential demand in India
The new Governemnt that comes to power in May 2014 will have to prioritise its action plan for the next five years to ensure that India achieves 10% growth in a sustainable manner, said Kapoor.
''India deserves not 8-9% but 10% growth. The new Government in its first budget has the unique opportunity to demonstrate a sense of urgency in its resolve to fast track several important bills which will help revive investor sentiment for overall economic revival,'' added Assocham chief.
He said India had the best opportunity. While India is a long-term sustainable market, there is a need to rebuild confidence. As for his expectations from the new government, Kapoor said ''we must push for bold decisions …get instant tax reforms, business regulations.''
However, Senior Representative (India and Nepal) of the International Monetary Fund, Thomas Richardson said, ''We are pretty bullish about India story which is solid and intact. (But) Turning growth will require addressing structural bottlenecks.''
On the macro picture ahead of the elections he said inflation remains one of the key macroeconomic challenges..Budget deficit is not out of control but on the high side. On subsidies he stressed the need for targeting and reform since the rich people get advantage of the subsidies like fuel while the poor do not get it. ''It is regressive,'' he said.
He said the macro picture looks much better today than last year when India faced volatility on account of high Current Account Deficit and India will continue to be a destination for investors.
Director and CEO of ICRIER Rajat Kathuria said, India suffers from poor quality physical infrastructure and delays in project clearances. The issue of physical infrastructure and institutional capacity is much more critical at the state level…desperately needed to improve to bounce back to 7-8% growth.
