“The RBI and the Monetary Policy Committee are being cautious in not recognising the significant decline in inflation. Global commodity prices have moderated and food prices are down,” CII Director General Chandrajit Banerjee told PTI.
On the performance of the Narendra Modi-led NDA government, which completed three years in office, Banerjee said there is now optimism that economic growth will accelerate, macro-stability will continue and inefficiencies in the economy will be brought down.
“The many steps taken to attract foreign investment have borne fruit. In industry, we are confident that the investment cycle will pick up soon,” the CII director general said in an e-mail response.
He said the businesses and government need to work together to build a strategy for a stronger economic base.
On the Goods and Services Tax (GST) Banerjee termed the GST as the most transformative and far reaching reform to India’s tax system since Independence.
However, he said the industry has requested the government to allow a ‘trial run’ period initially during the transition period for the industry, especially the micro, small and medium enterprises.
“Initial few quarters would be a period of tests and trials and learning and relearning for the trade and industry for GST transition and implementation. Hence the industry has submitted that allowing a period of trial run be considered and defaults and delays in filing of returns be condoned,” the CII director general said.