CII sees growth despite slow reforms

The newly-elected president of the Confederation of Indian Industry, Anand Mahindra, said the slowing of economic reforms would not have any impact on the country's growth rate.

Mahindra said the government's target of a 8 per cent growth rate by 2010 would be achieved despite the grounding of several reform measures like the raising of the foreign direct investment limit in the telecom and insurance sectors, divestment in public sector undertakings and the imposition of a countrywide value-added tax regime.

He said CII would work hand-in-hand with the government to achieve higher growth and that the industry would need the government's support to stay on the growth path.

He said reform measures relating to divestment and foreign direct investment were taking place, but would take time.

"A gradual progress on these reforms will also push the country's growth," he said. Mahindra told Business Standard the industry body would not focus on large companies only.

"It is the small and medium sector that can transform the country's economic health and we will try increase our assistance to enterprises in these sectors," he said.

Mahindra said apart from its earlier agenda of making Indian industry more competitive, the industry body would also work to create Indian multi-national corporations.

To achieve this, the CII has set up the Indian Multinationals Council, the first of its kind, to provide inputs to companies wanting to try their luck abroad.

Ranbaxy CEO DS Brar has been appointed chairman of the council. "The main agenda for me will be to build Indian MNCs. With this in mind we have added the sub-theme of 'Building Indian MNCs' to the existing theme," he said.

Mahindra said the pharmaceutical sector would be the key driver of the country's growth after infotech.