Public investments must drive agriculture sector: ASSOCHAM

The Dollar Business Bureau Indian Inc expects some major initiatives and a forward movement in key sectors to be essentially led by the public sector investment in the next two quarters. These include road, power, coal and non-renewable energy sectors, informed the Associated Chamber of Commerce (ASSOCHAM). The industry body, in its release, also said that there is a need for major reforms and measures in the agricultural sector that is currently undergoing crisis. While making a pitch for huge public investment in areas like irrigation, rural infrastructure and power supply, the industry body also informed that the government is likely to continue with support in inputs like fertilizers, among others. Speaking on the same, Rana Kapoor, president of ASSOCHAM, also made a strong pitch for the development of rural infrastructure. He said that there is a need to provide an immediate support for rural economy in the absence of market risks and unfavourable weather conditions by offering assistance for a host of industrial sectors like farm equipment, motorcycles, sugar mills, food processing and fertilizers, among others. Having taken several initiatives towards infrastructure development, Prime Minister Narendra Modi’s government is expected to give increased attention to the rural economy, although several of the financial inclusion programmes like the Jan Dhan Yojna would help the countryside, he added. The ASSOCHAM president further pointed out that there are select sectors of the economy that are under stress, while informing that the industry body has given seven out of ten rating for the government’s one-year performance that resulted in controlled inflation, stability in the foreign exchange, reforms in insurance and defence production, among others. Pointed out to the sectors like housing, real estate, banking, telecom that are under stress, he also raised concern over the merchandise exports saying that they are also causing some anxiety with slowdown in global demand. However, the government’s initiatives like monetisation of gold would bring in stability in country’s balance payment by a way of reduction in gold imports, he added. Besides, he also expressed hope that the Goods and Services Tax Bill would finally move towards a law. Referring to its assessment, the industry body added that for kick starting the economy growth, the domestic consumer demand has to be revived along with creating employment opportunities. Sectors like tourism and aviation are some of the sector that can create a huge employment opportunities along with boosting sectors such as construction and real estate, it added.    

May 25, 2015 | 5:05 pm IST.