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 has fostered a dynamic economic environment in the last five years with implementation of various praiseworthy economic reforms; and India has increased its presence significantly in the world economic system,” said Rajeev Talwar, president, PHD Chamber of Commerce and Industry, in a press statement.
Going ahead, the government must expedite liquidity infusion through gradual reduction in CRR from the current level of 4 percent to 2 percent and reduction in SLR from 19 percent to 15 percent, said Talwar.
“We appreciate the recent cut in repo rate by 25 bps and expect that the repo rate would be reduced by 125 bps gradually from the current level of 5.75 percent to 4.5 percent in the coming quarters,” said Talwar.
There is a need to push NPA resolution timely to bring back liquidity in the system, Talwar added.
He said creation of jobs in the economy would require structural reforms in the labour laws. The low hanging fruit at this juncture is to promote labour intensive manufacturing by enacting law for fixed term employment in all sectors and making the labour laws simpler by converting 44 Labour Laws into four Labour Codes.
The GST on Tourism facilities must be charged at fresh rates of 5 percent for accommodation uptoRs 15,000 and 12 percent above Rs 15,000 to bring 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 global headwinds and at the same time seize the global opportunity by enhancing low cost trade finance, said Talwar.