Continuous fuel price rise hurting economy: CII

HYDERABAD: The continuous rise in fuel prices has hit industries badly as it has led to a massive surge in freight and logistics costs, Confederation of Indian Industry (CII) southern region chairman CK Ranganathan said on Wednesday. He pointed out that this unchecked rise in the fuel prices is not a healthy sign as it is not only burdening citizens but also creating stress in the economy.
Ranganathan said that CII has urged the state and central governments to rationalise taxes on fuel. "Some of the state governments have accepted our requests and slashed GST and that way they have reduced fuel prices...," he said, adding that he expects others to follow suit and ease the burden on citizens as well as industry.
Earlier this year, states like Tamil Nadu, West Bengal, Rajasthan, Assam and Meghalaya slashed taxes on fuel. He also said that to aid the recovery of the economy, state governments must focus on developing a conducive ecosystem for startups to grow. State governments can also look at improving the ease of doing business quotient to attract more investments, he added.
He said state governments must chart out a preparatory plan of action for the third Covid-19 wave by training medical students so that in case of emergency there is adequate manpower support.
"State governments should set up sector-wise joint task forces with industry and government to assess the impact of key industry sectors in case of a third wave," Ranganathan said, adding that companies that have vaccinated all their employees must be offered incentives. CII will also be launching its 'Light House project' to nurture the current and future business leaders in South India.