Monitor inflation data like Sensex on real time basis; ASSOCHAM to new
govt
ASSOCHAM President Rana Kapoor today said that Prime Minister designate Narendra Modi and his team should hit the ground immediately after assuming office and for starters aim at taming decisively inflation by monitoring the CPI-WPI data the way sensex is monitored so that the debate of growth versus inflation is settled once and for all. Interest rates would then surely drop significantly. Even as there are doubts over regular monsoon this year, the country is estimated to be harvesting record foodgrain production of 264 million tonnes in 2014 with most of the essential items like rice, wheat, coarse cereals, oilseeds and sugar reaching new highs. “There is no issue of supply constraint, supply is in plenty. It is only a question of supply management which should be done in a control room type of environment, staying in constant touch with the state governments. Aggressive market interventions should be done for wheat, rice etc so that prices remain in check”, said Kapoor. Several line ministries under the PMO should be on constant vigil. Besides, while the industry and financial markets have high expectations from Modi, “We need not always talk in terms of specific and micro issues as to how many subsidised LPG cylinders, should the government give or how frequently the government should raise the diesel prices… We should leave the micro-management to the government. Instead, we in the industry would rather expect the incoming government to focus on financial discipline (how it achieves should be left to it) and first rate governance efficiency in terms of reaching out to both citizens and industry …..There is no conflict of interests between the rights of common citizens and the industry, which unfortunately has been projected to be so,” ASSOCHAM President said. He said it was time the industry and economists also realised that good economic reforms must also be people friendly so that they command a solid political support. “No amount of debate on reforms will work as long as they are politically not viable and saleable to the common people. He and she understand the language of mouth and we in the Indian industry would like to assure the NDA Government that our objective is common- make life of average Indian far better”.
ASSOCHAM President Rana Kapoor today said that Prime Minister designate Narendra Modi and his team should hit the ground immediately after assuming office and for starters aim at taming decisively inflation by monitoring the CPI-WPI data the way sensex is monitored so that the debate of growth versus inflation is settled once and for all. Interest rates would then surely drop significantly. Even as there are doubts over regular monsoon this year, the country is estimated to be harvesting record foodgrain production of 264 million tonnes in 2014 with most of the essential items like rice, wheat, coarse cereals, oilseeds and sugar reaching new highs. “There is no issue of supply constraint, supply is in plenty. It is only a question of supply management which should be done in a control room type of environment, staying in constant touch with the state governments. Aggressive market interventions should be done for wheat, rice etc so that prices remain in check”, said Kapoor. Several line ministries under the PMO should be on constant vigil. Besides, while the industry and financial markets have high expectations from Modi, “We need not always talk in terms of specific and micro issues as to how many subsidised LPG cylinders, should the government give or how frequently the government should raise the diesel prices… We should leave the micro-management to the government. Instead, we in the industry would rather expect the incoming government to focus on financial discipline (how it achieves should be left to it) and first rate governance efficiency in terms of reaching out to both citizens and industry …..There is no conflict of interests between the rights of common citizens and the industry, which unfortunately has been projected to be so,” ASSOCHAM President said. He said it was time the industry and economists also realised that good economic reforms must also be people friendly so that they command a solid political support. “No amount of debate on reforms will work as long as they are politically not viable and saleable to the common people. He and she understand the language of mouth and we in the Indian industry would like to assure the NDA Government that our objective is common- make life of average Indian far better”.
