AIAI’s Reaction to Economic Survey

Economic Survey presented by the Ministry of Finance laid hopes on revival of economy in view of the structural reforms such as Goods and Services Tax (GST) and various other initiatives to boost GDP growth to 6.7 percent in current year and 7 to 7.5 per cent in next fiscal year, which shall ultimately lead to job creation said Mr. Vijay Kalantri, President, All India Association of Industries (AIAI).

However various initiatives in the area of infrastructure, service sector and long term vision empowering new India and its emergence and containing inflation has been a good booster for health of economy said Mr. Kalantri.

AIAI feels that Non Performing Assets (NPA) and poor concern but needs to be dealt under Insolvency and Bankruptcy Code (IBC) or Government should come out with appropriate guidelines to deal with the issues without loss of job.

AIAI is also concerned at the low credit to MSME sector as the credit growth to Micro and small enterprises is only 4.6 per cent while credit to medium enterprises to 8.3% only. However the only matter of hope is that various loan scheme such as Pradhan  MantriMudra  Yojana (PMMY)  have crossed a target of 1.8 lakh crore added Mr. Kalantri.

The biggest satisfaction coming out of economic survey is increase in export by over 20 percent and service sector by 8.4 per cent