India Inc. welcomes Economic Survey 2016-17

New Delhi, Jan 31 (IANS) India Inc. on Tuesday welcomed the Economic Survey 2016-17 which was tabled in Parliament by Union Finance Minister Arun Jaitley.

According to the Confederation of Indian Industry (CII), the Economic Survey has rightly assessed the impact of demonetisation on the GDP (gross domestic product) growth rate.

"CII is in agreement with the Economic Survey that the impact of demonetisation on the GDP growth rate will be temporary and that once remonetisation is effected, the growth rate would revert to over 7 per cent," Chandrajit Banerjee, Director General of CII, was quoted as saying in a statement.

"The Economic Survey's estimate of growth at 6.75 - 7.5 per cent is on expected lines, and CII believes that this will be achieved."

Commenting on the survey, Pankaj Patel, President of Ficci (Federation of Indian Chambers of Commerce and Industry), said: "Ficci agrees with the need to overcome the three 'meta challenges' as identified in the survey namely inefficient redistribution, ambivalence about the private sector and property rights and the improving but still challenged state capacity."

Besides, Ficci welcomed the Economic Survey's proposal of having a centralised public sector asset rehabilitation agency (PARA).

"Ficci welcomes this suggestion and it is closely related to our earlier submission to have a National Asset Management Company (NAMCO) to address the issue of large and complex stressed assets particularly in the infrastructure sector," the Ficci statement said.

Ficci noted the survey's suggestion on the need to have "detailed discussions" on the concept of "Universal Basic Income".

"This is an extension of the idea that was mooted by the government earlier when it introduced the concept of JAM trinity and is currently implementing the same with full vigour," the statement said.

Another major business chamber, Assocham elaborated that the Economic Survey "has rightly" highlighted the potential risks of higher oil prices, trade tensions from sharp currency movements and geo-political factors.

"An upsurge in protectionism that could affect India's exports is surely a matter of concern," Assocham President Sunil Kanoria said in a statement.

As per PHD Chamber of Commerce and Industry, the Economic Survey provided a road map for the implementation of GST (Goods and Services Tax).

"As Economic Survey provides road map for the implementation of GST, it will create a common market in India, improve tax compliance and governance, boost investment and growth and indicate that the double digit growth trajectory is not far away," said Gopal Jiwarajka, President of PHD Chamber of Commerce and Industry.

"We appreciate government's initiatives to facilitate investment and ease of doing business in the country."