CII sees GDP growth at 7.2% this year

Confederation of Indian Industry president Y C Deveshwar today said India was expected to see a gross domestic product growth of 7.2 per cent in the current financial year, up from last year's 6.9 per cent.

Agriculture, manufacturing and service sectors will be the growth drivers, estimated to grow at 3 per cent, 8.1 per cent and 8.3 per cent, respectively.

Deveshwar rubbished reports that the monsoons will be below normal this year. "We still expect a normal monsoon," he said.

According to Deveshwar, CII will work towards a uniform goods and services tax, tax moderation and widening of the tax net, rationalisation of import tariff, lowering of state and municipal regulatory burden on businesses and reviewing of labour laws.

"In apparel, for instance, new opportunity has opened up. To make the most of it, we need more flexibility in labour laws," Deveshwar said.

With regards to enhancing the rural economy, the CII recommends greater use of IT, watershed development and market-led crop diversification.

Deveshwar also said that "the APMC act needs to be amended in every state" in order to attract private capital.

CII this year will also focus on employability and employment generation by paying special attention to textiles, leather, food processing, tourism, paper, gem and jewellery.