Industry Captains to PM: ‘Convert decisions into actions to Bring the Economy Back to Track’

Monday, July 29, 2013: The Prime Minister`s Council on Trade & Industry met at his residence, 7 Race Course Road, New Delhi to brainstorm and discuss key problems relating to subdued growth, volatile exchange rate and widening current account deficit giving the Indian economy an outlook of gloom. The agenda focused on measures to correct the Current Account Deficit; the slowdown of industrial growth and measures to revive it; depreciation of the Rupee and its impact on trade and industry; skill development and development of industrial corridors.

PM meet1The overall sentiment was on the need to bring back the mood, converting decisions to action and taking the country back to a growth path of 8 per cent or more, a PMO statement said.

“The Prime Minister said it was a rewarding discussion and wanted a report to be submitted within one month on what can be done in the next 2-3 months,” it said after the meeting.

The meeting was attended by the Prime Minister Manmohan Singh, the Finance Minister P Chidambaram, the Commerce & Industries Minister Anand Sharma, Deputy Chairman of the Planning Commission Montek Singh Ahluwalia, Chairman of the National Manufacturing Competitiveness Council V. Krishnamurthy , Chairman of PM`s Economic Advisory Council C. Rangrajan, senior officials of the government and from the industry, Rahul Bajaj, Ashok Ganguly, Mukesh D. Ambani, Narayana Murthy, Azim Premji, Swati Piramal, Deepak Parekh, Jamshyd N. Godrej, Chanda Kochhar, Venu Srinivasan, Sunil Kant Munjal, S. Gopalakrishnan, Rana Kapoor, Sunil B. Mittal and Naina Lal Kidwai.

The Prime Minister Manmohan Singh welcomed the gathering and invited the captains of industry to give suggestions to improve the economy and remove the mood of pessimism that he thought has unnecessarily spread in some quarters.
In a detailed and lengthy discussion lasting three hours, the industry captains are believed to have given some candid and concrete suggestions on how to improve matters.

Reliance Industries chairman Mukesh Ambani said the industry believe in India growth story, a sentiment echoed by Bharti Group chief Sunil Mittal, who also wanted the government to take “brave and bold” steps.

Ficci president and HSBC India head Naina Lal Kidwai said industry wanted quick implementation of decisions.

Noted industrialist Rahul Bajaj said the pessimism in the economy was due to regulatory bottlenecks and demanded their removal at the earliest.

Some of the major issues discussed were:-



Reviving growth

Industrial Corridors

Skill Development


Raising duties on consumers and luxury goods

Focus as much on growth as on inclusion

Have sector specific zones and clusters

Need good certification on a vast scale


Innovative ways of reducing gold imports through bonds, etc

Extend accelerated depreciation to SMEs

Have effcient single window clearances and good facilitation

Focus on home service market


Reducing conditions on FDI and speed up FIPB

Removing bottlenecks of pharma sector and increasing R&D

Give out pre-cleared projects

Using NREGA for skill development


Have a sovereign bond and reciprocal swaplines

Moratorium on loan repayment for delayed projects

Accelerate the Amritsar-Delhi-Kolkatta Corridor as this region is vital for growth


Accelerate software exports by easing domestic movement of people, resolve the tax issues, make inward visas easier and taking up the Visa Bill with USA

Focussing on annuity based PPP Projects.


Raise easy resources by selling SUUTI, BALCO, HZL shares.

Restore cash flows of firms by paying receivables


Boost agriculture exports

Boosting domestic electronic manufacture


Bringing off shore Rupee market on shore

Use PSU land for industrial parks


Improve Coal India operations through PPP

Restart renewable energy projects


Boost textile exports

Focus on incumbent investors for the short run


Resolve the tax issues and remove tax uncertainty


Using Government procurement to boost local Industry


Focusing on urban infrastructure

What Next?

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