Industry looks for 6.5pc growth in the first year of Modi era

C Shivakumar

Chennai:

The industry as well as the stock exchange reacted positively to the Modi wave that engulfed the nation with Confederation of Indian Industry and Madras Chamber of Commerce and Industry predicting that a stable government could take growth to 6.5 per cent to seven per cent..

The Sensex breached the 25,000 mark by shooting up 1,300 points but later calmed at 24,121.74, a rise of 216.14 points thus giving a green signal to pro-reform Modi government at the Centre.

Ajay Shriram, president of CII said that with prudent macroeconomic management by the new government, the economy could recover to 6.5 per cent GDP growth rate in 2014-15 as against an estimated 4.9pc in 2013-14. Continued reforms could take GDP growth rate to 8pc level in three years.”

Chandrajit Banerjee, Director General, CII stated that CII expects the government to focus on land acquisition act and the new companies act. A strong reform package is needed at this stage to generate the 150 million new jobs that India needs over the next 10 years.

Madras Chamber president T Shivaraman welcomed  the decisive verdict. This should definitely help in fast tracking the reforms that are badly needed and pending for too long and create a more conducive business environment, boosting up the perceptions and general morale. “We should now quickly work to catch up with some of the opportunities lost, in order to hasten our GDP growth to a higher  trajectory of a minimum of 7-8 pc , which we are definitely capable of ,” he said.

Meanwhile, Federation  of Indian Chamber of Commerce and Industry President M Rafeeque Ahmed congratulated Tamil nadu Chief Minister for her party’s resounding success in Tamil Nadu.” FICCI TNSC is confident that Chief Minister’s leadership will contribute not only in the state economy but will significantly contribute nationally,” FICCI president ordered.