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Green shoots in rural economy, monsoon augurs well: CII president

Rural consumption has increased somewhat and the monsoon is expected to further help revive the rural economy, said Sanjiv Puri, president of the Confederation of Indian Industry (CII). He underlined that more measures need to be taken to increase the productivity and resilience of the sector and create more employment.

“We are seeing some green revivals in the rural economy. The monsoon is better, which will help in better crops, and this augurs well for the rural economy,” he said in response to a question on Thursday.

The newly elected CII President noted that the problems in the rural sector are due to extreme weather events and there is a need to strengthen productivity and build resilience in agriculture. He also underlined the need to equip youth in rural areas with new skills and promote rural entrepreneurship.

The sector organization is optimistic about the economic prospects and expects GDP growth of 8% this financial year. “While the growth estimate is above consensus, the experience from previous years is that India has comfortably outperformed initial estimates,” Puri said in his first media interaction since taking over as CII president. “The growth estimate depends critically on addressing the unfinished reform agenda as a matter of priority, in addition to improving the world trade prospects that support our exports, the twin engines of investment and consumption that are doing well and expectations of a normal monsoon,” he underlined.

As part of a 14-point agenda for the new government to drive the next phase of economic transformation, CII has also proposed a concerted focus on agriculture by building consensus between the Center and states on agricultural reforms through the establishment of an Inter-State Agrarian Reform Council. “Steps such as launching new converged programs for producer collectives to increase farmers’ incomes; developing storage infrastructure to reduce waste; setting up a National Network for Market Information and Crop Planning; The adoption of technology in agriculture and the pursuit of a stable agricultural export policy require due attention,” the report said. It has also suggested that the industry is involved in the National Rural Livelihood Mission; developing national industrial parks; launching a Smart Village program are some suggestions to strengthen rural development.

CII’s other recommendations for the new government include continued tax reforms such as drawing up a roadmap to rationalize and simplify the capital gains tax and TDS provisions. In the area of ​​indirect taxes, it has proposed to bring Goods and Services Tax (GST) under the three-rate structure, with moderation in rates, and to bring petroleum products, electricity and real estate under GST, in consultation with the GST Council. It has also called for further measures to facilitate ease of doing business.