NEW DELHI : The Union Budget for 2016-17 will be announced at a time when the macro-economic milieu continues to be domestically and globally challenging and the focus should be on stepping up the pace of investment expansion for achieving higher growth and job creation.
The Confederation of Indian Industry (CII) looks forward to suitable policy interventions which would rekindle business sentiment and thereby help to debottleneck the economy.
“Considering that broad based revival of private investment is being constrained on account of weak order book situation resulting in capacity overhang, there are hopes and expectations that the forthcoming Budget would increase spending by the Government, the public sector and by quasi-Government bodies” according to Mr Chandrajit Banerjee, Director General, CII.
According to CII, higher public investment in key projects especially in infrastructure sectors such as roads, railways, power and waterways would 'crowd in' private investment and in turn have a cascading effect on growth. CII has also recommended speedy implementation of industrial clusters and parks such as NIMZ, DMIC & DFC projects.
CII would also recommend incentivizing 'off balance sheet' investment proposals, such as NHAI projects, railways etc., where it is possible to generate adequate revenues. The idea could also extend to identifying and promoting more PPP opportunities where the viability gap funding helps facilitate a much greater economic return.
Source: Dailyshippingtimes.com
