“Strong macroeconomic fundamentals, favourable business sentiments and downward trend in interest rates are significant positives for the economy. The CII estimates that the government infrastructure investments and increased investments from the private sector will boost the gross domestic product growth to 8 percent range,” Forbes said at his first press conference after assuming charge as president of India’s premier industry body.
However, Forbes said, external debt situation would have to be watched closely. A flat corporate performance, fiscal pressure from 7th pay commission and oil price hike would be risk factors in the coming year, he added.
He also unveiled the Confederation of Indian Industry (CII) theme of ‘Building National Competitiveness’ for 2016-17.
The new CII president called for quick passage of Goods and Services Tax Bill, saying it would make India a single market and thereby reduce transaction costs.
Forbes also advocated government action on the bankruptcy bill, uniform procurement policy and called on the states to consider amending their labour laws and land acquisition processes for better investment climate.
He said human development, ease of doing business, corporate integrity and good citizenship, innovation and technical capability, sustainability and integrating with the world are the key issues for building the national competitiveness.