CII’s agenda is to accelerate economic (GDP) growth to 6 – 6.5 percent this year and to take it to 8.5 – 9 percent as quickly as possible

The drivers for growth would be reforms and governance, inclusive growth and affirmative action, innovation, entrepreneurship and growth of MSMEs and transformation of sectors: S Gopalakrishnan, President CII

India ranks 132nd among 185 countries on the parameter of ‘ease of doing business’; this needs to be improved: S Gopalakrishnan, President CII &  Co-Founder and Executive Co-Chairman, Infosys Limited

CII Members’ Interactive Meet with Mr S Gopalakrishnan, President CII took place here today. Addressing the meet, Mr Gopalakrishnan, informed the audience that CII theme for 2013-14 is “Accelerating Economic Growth through Innovation, Transformation, Inclusion and Governance”. He said, “Our agenda is to accelerate economic (GDP) growth to 6 – 6.5 percent this year and to take it to 8.5 – 9 percent as quickly as possible. “ He further added, “The drivers for growth would be reforms and governance, inclusive growth and affirmative action, innovation, entrepreneurship and growth of MSMEs and transformation of sectors.” On the front of reforms and governance, he highlighted that the World Bank Report indicates that India ranks 132nd among 185 countries on the parameter of ‘ease of doing business’. This needs to be improved. Further, FDI should be encouraged wherever applicable in a phased manner. With reference to GST implementation, he also informed that it has been a top priority of CII to play an active role in creating the right atmosphere. He also highlighted that CII has been active on facilitating distribution reforms in power sector, model APMC Act, leveraging technology for strengthening MSMEs, the Companies Bill, Land Acquisition Bill, etc.

Mr S Gopalakrishnan also briefed the members on CII’s efforts towards the inclusive growth agenda. He informed that CII has already engaged with Dalit Chamber of Commerce and also been active on skill building and employment of marginalized sectors. On the front of innovation and entrepreneurship, CII efforts are on to popularize the job portal http://www.thefairjob.com linking industry with job seekers from marginalized sections. In transformation of sectors, President CII informed that this year CII would be starting a three year project called Project Village Budha which would be targeted to implement the idea of Kaizens (small improvements) in a village environment. Further, ‘Visionary Leaders for Manufacturing Programme’ of CII would help 100 top MSMEs to improve on their current size and status. Mr Gopalakrishnan, concluded his remarks by saying, “We will also continue our focus on global engagement and sustainability.”

Chandrajit Banerjee on The Report of Expert Committee on GAAR chaired by Dr Parthasarathi Shome

The Report of Expert Committee on GAAR chaired by Dr Parthasarathi Shome is most encouraging. CII has been advocating a postponement in the introduction of GAAR. We see that the Committee has accepted this recommendation, which is most welcome.

The Report addresses the issues of grandfathering of existing tax incentives and concessions, independence of GAAR approving panel and clarifies concepts like commercial substance, etc. These have been strong recommendations of CII and we are delighted that the Committee has considered these suggestions favourably.

CII is also happy to note that its recommendation that the approving panel must be independent has been considered and the Expert Committee has suggested a 5 member approval panel of which 3 members will be outside of the Department of Revenue and the Chair will be a retired Judge. CII’s another major recommendation that the existing tax incentives must be grandfathered has been considered as this will help reverse the loss of investors’ confidence.

The report is especially laudable since ambiguity in the earlier guidelines in terms of use of words such as Commercial substance, have been addressed by providing a clear definition of these words.