“CII predicts 7.3-7.7 percent growth in 2018-19 and expects it to strengthen further in the few years to come. This in spite of some challenges in the global economy, including hardening of interest rate regimes, volatility in oil prices, etc,” said Rakesh Bharti Mittal, President, CII addressing a Press Conference here today.
The reforms over the past 4 years was mentioned by Mr Mittal and he further stated that GST and Insolvency and Bankruptcy Code are the most relevant reforms that would change the way business is done in the country.
Alluding to the intensive amount of work on ease of doing business that is happening across states, the CII President said that state governments working proactively on EoDB are getting better investments and business interest and the Government of India’s ranking of states plays a good role in this.
Responding to a question on how are the large NPA accumulation to be dealt with, Mr Mittal said that CII has been propagating setting up of a very large Asset Reconstruction Institution or a “bad bank”, which would help clean up the banking system of the stressed assets and allow for unfettered credit flow.
Alluding to credit growth, which has picked up after a long period, the CII President said that this was a most welcome feature. However, he added that many SMEs are still struggling to get credit and even when they do, their cost of credit is high making their business operations difficult.