On the issue of agrarian distress, CII stated that the government must continue to work on doubling farmers income and it will thus help industry to grow.
CII feels that strong action to spur consumption, investments and net exports will help boost India's GDP growth rates. It said an estimated amount of $5.74 trillion would be required over the next five years to meet the target by 2023-24.
Vikram Kirloskar, CII President, said that it may be a tall order but they remain hopeful as an industry.
Recent data released by the Ministry of Statistics shows GDP growth rate at a low of 5.8% for the quarter ending March 2019. The estimated growth rate for FY'19 is at a five-year low at 6.8% largely due to slowdown in consumption and investment.
On the issue of agrarian distress, CII stated that the government must continue to work on doubling farmers income and it will thus help industry to grow. Kirloskar added that taking care of the bottom of the pyramid will ensure that industry flourishes.
CII also recommended reducing cost of equity to make it more attractive than debt. The confederation called for a reduction in tax on equity so that equity becomes a way of investment rather than debt.
At present, there are multiple levels of taxation on equity. Dividend distribution tax, capital gains tax on sale of shares among others may push savers towards investing in equity. "This does not leave enough risk capital to fuel businesses. For the economy to grow, it is important to reduce cost of equity," said Uday Kotak, CII President-Designate and founder, MD and CEO of Kotak Mahindra Bank.
