Confederation of Indian Industry (CII) President Shobana Kamineni said that agriculture has potential to achieve significant productivity gains and for that States need to adopt the Model Act for agriculture marketing and notify rules.
Talking to reporters for the first time after being appointed as CII President, said, “ Adoption of the Model Act by the States will help deliver higher prices to the farmers and competitive price to consumer.”
She also suggested to promote crop based clusters and aggregate farmers into producer organisation. “
Citing success story of Madhya Pradesh Model of Agriculture, the CII President said, “ We are heavily dependent on monsoon. We need to place adequate agricultural infrastructure such as irrigation in place so that our farmers do not look at sky for rains.”
She said that conditions are positive for an economic recovery in the current year, with GDP growth expected to lie in the range of 7.5-8.0 per cent.
Going forward, “it is possible to target 1 per cent additional growth each year to reach 10 per cent in the next three years. The drivers for this step up in growth would include the benefits from implementation of GST, greater participation of women in the labour force, the urbanisation process which will drive greater economic activity in areas such as construction and government spending of up to Rs 30 trillion in various infrastructure projects over the next few years” Kamineni added.
A CII estimate shows that the entire construction sector can add 30 million jobs in the next ten years. These projects will also provide essential connectivity for enhancing opportunities for income growth.
She said, “ It is eminently possible to create 5 million jobs each year, if the GDP growth rate can be boosted by an extra 1 percent. CII’s analysis shows that as of now, we are creating about 3.7 million jobs annually.10-12 million people enter the working age population every year. Of these, about half actually do not look for jobs as they prefer to go into education or other activities. CII’s intensive skill development activities are ongoing and are designed to enhance the employability of the workforce.”
For the economy to move to a higher growth path, the slowdown in investments must be reversed. Consumer demand has been improving across sector and this should lead to higher capacity utilisation and further, to capacity expansions soon. A good monsoon would further boost rural demand.
“CII would continue to request the Government for quick action in reducing corporate income taxes for all corporates. This has become urgent given the lowering of tax rates across many other countries. The 25 percent rate is currently applicable only for companies with turnover up to Rs 50 crore. Eventually, the corporate tax rate could be brought down to 18 percent together with the removal of all incentives. CII believes this will lead to much better tax compliance” the CII President said.