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Federation of Indian Chambers of Commerce and Industry (FICCI) Secretary General Shailesh Kumar Pathak is a former bureaucrat who has worked across government, business and academia. He served in Madhya Pradesh and Chhattisgarh governments, and in the private sector, has helmed companies like ICICI, Larsen & Toubro and IDFC Bank. In an interview with DH’s Gyanendra Keshri, Pathak talks about India Inc’s wish-list from the new government that will assume power in June following the ongoing general elections. Edited excerpts:
What should be the immediate focus of the new government to propel economic growth?
The union government that will come into power in June must focus on encouraging business and job creation, by reducing the cost of doing business, as well as the ease of doing business. The cost of doing business includes input prices for land and buildings for factories and offices, availability of skilled workforce, cheaper cost of capital and cheaper inputs, especially for manufacturing. The ease of doing business would include all interaction with city, state and national government entities and regulatory agencies, which should all be moved to online self-certification, verification, and compliance. This would also include reform for quicker justice delivery and better law and order, including police reforms along with the rest of the executive.
How does FICCI plan to engage with the new government?
FICCI’s focus for 2024 and beyond is on ‘Viksit Bharat’, which has four pillars: Make in India, Farm Prosperity, Women led development, and Sustainability. We are already working closely with governments on these. We look forward to a common agenda of working together with the government of India, state governments and city governments. Almost all matters relating to business and industry are largely with the state governments and municipal levels.
What are the measures required to boost manufacturing?
Key goals which need to be targeted include achieving 12 per cent world share in manufacturing from 3.1 per cent, increasing share of manufacturing to 19 per cent of GDP from current 14 per cent, becoming a world leader in new technologies and achieving self-reliance in strategic products. FICCI is driving ten initiatives across five themes, which are ease of doing business, research & development and innovation, quality production at scale, digital initiatives, and talent and skills development.
In their economic manifestos, while the ruling BJP has promised to make the third-largest economy and work to make India a developed economy, the main opposition Congress party has talked about doubling the GDP in the next 10 years, what is the pace of economic growth required to achieve these targets?
Irrespective of which party comes to power, the Union Government must aim at maximizing economic growth and job creation.
What needs to be done to address the challenge of unemployment and inflation?
The government should try to encourage economic activity in the private sector, especially the micro, small & medium sector. This will directly increase tax collection and consequent public spending. Faster economic growth would lead to the creation of livelihood opportunities in the private sector, not limited to the government. New growth areas will further create new employment opportunities. Start-up India programme is leading to entrepreneurship. Virtuous competition among states is good. Businesses and labour gravitate to those states and regions that strongly promote economic growth. State governments should provide good infrastructure and good law and order.