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Political strife should not hit reforms: CII

Arun Bharat Ram, president, Confederation of Indian industry (CII), stated in a media release that political differences should not hold back economic reforms. While the charges of corruption and differences in political parties will take its own course, the focus should not shift from economic reforms that will stimulate growth.

The CII president stated that the current environment of political uncertainty was an extremely unfortunate development and a serious cause for concern. Especially coming after an outstanding growth and investment-oriented budget, these developments could affect sentiment in all spheres of economic activity, he added.

Bharat Ram urged all political leaders to come together and take the reforms process forward, which is critical for growth and creation of jobs.

He reiterated that the decisions to disinvest beyond 49 per cent, undertake labour law reforms, agriculture reforms and

financial sector reforms among others should be expedited. The important legislative changes announced recently by the finance minister such as repeal of SICA, Fiscal Responsibility Bill etc. should be carried out, the CII president stated.

Particularly emphasising the need for divestment beyond 49 per cent, the CII chief pointed out that it was necessary so that the PSUs are not subject to control, enquiry or directed to by various ministries and government agencies such as CVC, CAG and CBI, etc.

Only through this process of empowering management can the public sector employees' future be safeguarded, he added.

The CII president reiterated that all contributions to political parties should be through cheques to ensure transparency in fund raising by the parties. The industry should be encouraged to contribute by cheque and allowed to declare it as a tax deductible expense.

Arun Bharat Ram also stressed that state funding of elections and of political parties should also be allowed so that financing of elections and political parties by the corporate sector became transparent.

The CII president strongly felt that the Indian economy was poised for an upswing and revival, which was in the best interest of every single person in India. Political differences should not distract attention from the economy and economic reforms at this critical time.

History had shown that, on several occasions, politics took away the priority, which needed to be given to the economy. In 2001 history should not repeat itself and the economy should take precedence over politics, he said.

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