New Delhi, May 30
The Federation of Indian Chambers of Commerce and Industry (FICCI) today submitted an action plan to Prime Minister Manmohan Singh to rejuvenate the economy and to create employment opportunities in the rural sector.
Mr Yogendra K. Modi, President, FICCI, met the Prime Minister today and presented the action plan to spur economic growth in key sectors. He emphasised that since the agricultural sector had been bypassed by reforms, there was an urgent need to deregulate the farming sector to free the farmers from the plethora of controls.
He said: “Controls on inter-state movement of agricultural produce are severely affecting the income of farmers and price realisation for cereal and cash crops. The government should deregulate the agricultural sector to enable farmers to get better price realisation for their crops in the domestic and international market.”
The FICCI action plan has called for Prime Minister’s attention on other key areas as well, including manufacturing, disinvestment, labour and education, and emphasised on remedial steps. Mr Modi told the Prime Minister that there was a need to create one Indian market for farmers. The Prime Minister reportedly took keen interest in the action plan.
Mr Modi also suggested that proceeds from disinvestments should be earmarked for a dedicated fund for investments in agriculture and rural sectors so that the money could be utilised for generating opportunities for the poorest sections of the society.
A press statement issued by FICCI claimed that the Prime Minister responded positively to Mr Modi’s suggestion on earmarking disinvestment funds for rural areas only. It added that Mr Modi had also suggested that apart from rejuvenation of the rural sector, stimulation of investment in the manufacturing sector would lead to rapid growth of the economy and generation of new jobs particularly for semi-skilled workers. The potential of sectors such as textiles in creating new jobs was also discussed.
Expressing concern over industry’s worries over slow pace of labour reforms, Mr Modi suggested to make labour policy a State subject.
The FICCI action plan also called upon the government to set up dedicated missions to implement development programmes in critical sectors such as primary education, drinking water and sanitation to maximise the benefits to the rural and urban poor.
Responding to Mr Modi’s suggestions, the Prime Minister reportedly assured him that his government was committed to accelerating economic reforms and reorienting them to spread the benefits among common man.
