While presenting the suggestive roadmap for revitalizing economic growth to the Centre, PHD Chamber Wednesday said liquidity infusion, job creation and low cost export finance would be crucial at this juncture to revitalize the economy and accelerate it to a higher growth trajectory.
“The government hasfostered a dynamic economic environment in the last five years withimplementation of various praiseworthy economic reforms; and India hasincreased its presence significantly in the world economic system,” said RajeevTalwar, president, PHD Chamber of Commerce and Industry, in a press statement.
Going ahead, thegovernment must expedite liquidity infusion through gradual reduction in CRRfrom the current level of 4 percent to 2 percent and reduction in SLR from 19percent to 15 percent, said Talwar.
“We appreciate therecent cut in repo rate by 25 bps and expect that the repo rate would bereduced by 125 bps gradually from the current level of 5.75 percent to 4.5percent in the coming quarters,” said Talwar.
There is a need to push NPA resolution timely to bring backliquidity in the system, Talwar added.
He said creation ofjobs in the economy would require structural reforms in the labour laws. Thelow hanging fruit at this juncture is to promote labour intensive manufacturingby enacting law for fixed term employment in all sectors and making the labourlaws simpler by converting 44 Labour Laws into four Labour Codes.
The GST on Tourism facilities must be charged at fresh ratesof 5 percent for accommodation uptoRs 15,000 and 12 percent above Rs 15,000 tobring in investments and create jobs in Hotels, Restaurants, Airlines,Railways, Road Transport as well as Travel Agents, suggests Mr Rajeev Talwar.
There is a need to insulate the economy from globalheadwinds and at the same time seize the global opportunity by enhancing lowcost trade finance, said Talwar.