Introduction of GST should be put on fast track  

Chairman and managing director of Kajaria Ceramics Ltd Ashok Kajaria took over as the new president of PHD Chamber of Commerce and Industry (PHDCCI) in February. Kajaria, who is the 70th president of the 104-year-old chamber, shared with FE’s Rajat Guha his plans for the chamber and focus for the next one year. Excerpts:

Which sectors is PHD Chamber of Commerce & Industry focusing on?

The chamber’s main focus would be on the six core sectors. We would focus even more and ideate with the government on roads and ports. Though the development is picking up in these sectors, a lot remains to be done to keep pace with the growing vehicular population. We would also come out with an industrial policy that would suggest policy changes in these sectors. The industrial policy would also include renewed focus on sectors like tourism infrastructure and solar energy.

How is the macro-economic environment looking? What are the factors that are going to drive the economic growth and what policy intervention do you seek?

The economy is in the right direction. The government has taken right steps by gradually rolling back the stimulus packages it had extended in last two years. More importantly, the time of giving and taking away the packages was apt. However, the government should fast track the introduction of GST to compound the positive effect of its earlier moves. Apart from this, the government, along with the Reserve Bank of India, must take effective steps to contain inflation, especially food prices, through timely changes in interst rates.

Your take on the need for companies taking recourse to corporate social responsibility?

Our focus is to prompt corporates to focus more and more on rural development. There is already immense development happening on that front but there is a serious need to step up the progress in the rural and backward areas of the country. Our chamber is already working on skill development initiative with the Prime Minister’s office. PHD members have adopted four ITI and delivering training from the employment point of view.

What is your take on the government’s recent move to clear confusion over the FDI by consolidating various press notes into one?

The move would aid simplification, boost global investor’s confidence and enhance predictability that would also neutralise any negative perceptions based on hearsay regarding FDI regulatory policy environment. It would help foreign investors in understanding better the FDI norms. The decision to update the document every six month is also a positive move.

Source: Financial Express, India, dated 29/04/2010