New
Delhi: Corporate leaders representing the entire
cross-section of the Indian industry will discuss the key
recommendations for the Union budget 2002-03 at the CII national
council meeting in New Delhi on 22 January 2001. Besides the
recommendations for the budget, the council members will also
brainstorm on key issues and sectors, including customs duty reforms
and the entertainment sector, according to a CII press communiqu.
 Last
years budget was presented in the face of difficult challenges
with the economy in general and manufacturing in particular
showing signs of a slowdown. It was an excellent budget anchored as
part of a long-term plan to attain a more open economy and to achieve
a higher GDP growth. This year, however, the challenges have grown
manifold, says CII.
The essence of CII recommendations is continuation of long-term
reforms in critical areas like agricultural, financial and
infrastructure sectors and labour laws combined with prudent
short-term measures to keep sentiment alive in a dynamic,
ever-changing economic scenario.
The CII national council meeting will also give an opportunity to
industry leaders to discuss the role of emerging sectors like the
entertainment and media. In a recent meeting with Finance Minister
Yashwant Sinha, CII had called for fiscal incentives for the
entertainment sectors, as it is the most vibrant expression of Indias
democracy.
Hence it needs all the encouragement, including fiscal incentives,
extended to the other components of the ICE sectors information
technology and communications. CIIs suggestions for the sector also
covered, among others, service tax, income-tax exemption for
public-service broadcasting, customs duty for content creation
software, tax deducted at source, excise duty on audio CDs and an
anti-piracy fund.
An important issue that the industry in general faces is that of
customs duty reforms. Though a single rate could eliminate anomalies
and put a stop to classification disputes, CII says there is a need
for a greater debate whether India is ready for a single rate by
2004-05. Moreover, a single-rate structure is not followed by any
developed or a rapidly-developing country. CII has stressed that a
three-tier structure, on the other hand, has a strong rationale of
encouraging value-addition within the country.
The meeting will also include an interactive session with Prodipto
Ghosh, additional secretary to the prime minister, in which he will
discuss the role of the government as a facilitator of investments
both foreign as well as domestic. CII says the government through its
policies must ensure a conducive investment climate, which is critical
to attracting investments from both domestic and foreign investors.
Those
council member who would attend the meet include: Sanjiv Goenka
(president, CII), Ashok Soota (vice-president, CII, and chairman and
CEO, MindTree Consulting), Rahul Bajaj CMD, Bajaj Auto), Brijmohan
Lall (chairman, Hero Honda Motors), D S Brar (CEO and MD Ranbaxy
Laboratories), Subodh Bhargava (advisor, Eicher Group), Anu Aga
(chairperson, Thermax), Jamshyd N Godrej (CMD, Godrej and Boyce),
Phiroz Vandrevala (executive vice-president, Tata Consultancy
Services), Sunil Kant Munjal (managing director, Hero Corporate
Services), Harshavardhan Neotia (director, Gujarat Ambuja Cements),
Hari S Bhartia, co-chairman and managing director, Jubilant Organosys).
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