10 Things that will Revive India's Economy

Unlike Europe, the subsidies need to be maintained within two percent of the GDP so that fiscal deficit could be contained and the economy can benefit. With regard to the monetary policy Godrej said, “We need further reduction in both repo rates and CRR. This is the right time to create monetary stimulus to revive economy.” There must be cooperation amongst the Centre, Opposition, State Governments and the industry to implement the policies as quickly as possible. The CII expects the Indian economy to grow at the rate of 9 percent in 2013-14 but this year the objective is just 7.5 percent.

The 10 point CII economic revival package also contains other points like allowing speedy depreciation for investments in the plant and machinery at 25 percent and also allowing FDI in multi brand retail and providing interest financial assistance of 2 percent on export credit for six months. The other suggestions were to create an export development fund, to clear 50 large projects in the 30 days and check with the concerned ministries and state government, to announce a plan for fiscal consolidation and 25 percent mass tax deduction on the expenditure acquired by companies “going green”. S. Gopalkrishnan the CII President designate said that the 35,000 companies in 114 sectors put up a gloomy picture of the economy. Insight is worse than the reality and the current negative situation would make things worse.