Press Information Bureau

Government of India

Ministry of Commerce & Industry

16-August-2012 18:34 IST

Decisions to Improve Economic Climates within Next three Weeks, Says Anand Sharma

Chairs fourth meeting of the Government-Industry task force

The Union Minister of Commerce, Industry & Textiles Shri Anand Sharma has said that the government will come out with announcements pertaining to industrial environment that will address the subdued sentiment in the industry. Speaking after the fourth meeting of the Government-Industry Task Force here today, Shri Sharma said that “there is a shared concern over the declining industrial production, particularly the manufacturing sector. Also the non-creation of capital, the capital formation has plummeted that has a social dimension. We have also looked at other concerns of the industry so that steps are taken to improve the investors’ confidence as well as the climate of investment.... I have said so earlier that the government will take decisions which are the expectations of the industry and the investors... We hope that in the next three weeks there will be decisions by the government which will bring about a positive improvement.”

Speaking on the issue of FDI, Shri Sharma said that the government has “taken stock of every issue related to FDI. These are policy pronouncements and I am sure that there are concerns that some decisions got delayed... the government will take the appropriate and correct view which is in the interest of India’s economic growth and development. Hopefully soon.” He further said: “we are very clear that the government in consultation with stakeholders has taken some steps, some decisions and policies which are under implementation. There are other decisions which are required and we as a government while affirming our firm commitment to the reform agenda are clear that whatever steps have to be taken shall be taken whatever is within reach will be done...and announcements required will made.”

The industry captains raised the issue of the cost of credit. The Minister acknowledged their concerns and said that “the economic activity has to continue and therefore the easy availability of affordable credit to the industry registers with us. I have in the past taken this up with the Finance Minister, to the RBI. The rest countries in the world, the cost of credit has been brought down, therefore we need to seriously consider and take an early view on this.”

Acknowledging the industry’s concerns with regard to land acquisition, Shri Sharma assured that he will be taking up their case. “We have already registered these issues that the manufacturing zones, the DMIC... they have to be included and the SEZs in what is described as the public purpose,” said the Minister.

The meeting was attended by the captains of industry who are the member of the task force and also by the Secretaries of Commerce, Industry, Environment, Economic Affairs, Revenue, and Labour.

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DS/GK

Public purpose designation to address land acquisition and investment climate; government to announce policy steps on FDI and credit. The government will announce measures to restore investor confidence and improve the industrial investment climate by addressing declining manufacturing output and weak capital formation, reviewing FDI policy, affirming a reform agenda with steps already under implementation, and planning additional decisions. Industry concerns on credit cost and land acquisition will be addressed, including consideration of manufacturing zones, the DMIC corridor and SEZs within the ambit of public purpose to facilitate land access, with coordinated inter ministerial and stakeholder engagement.