The Congress led coalition government has assumed office and
formulated the Common Minimum Programme.  The Programme
parameters are by and large commendable.  Success of the
Programme would however depend both on the spirit and speed
with which implementation is achieved.

Constellation of leaders with economics background, particularly Dr. Manmohan Singh as
the Hon’ble Prime Minister, Dr. Montek Singh Ahluwalia as Deputy Chairman, Planning
Commission and Shri P Chidambaram as Finance Minister is perhaps the best for economic
development of the country.

Based on feedback from members, the Direct Taxes, the Indirect Taxes and Economic Affairs
Committees finalized Chamber’s Pre-Budget Memorandum which has since been forwarded
to the Finance Minister and others concerned.

Our Chamber has urged the Government to outline the roadmap for wiping out the revenue
deficit by 2009. I feel without the roadmap it might end up as a will of wisp, particularly
when States have been indulging in financial profligacy for quite some time now.  

Besides the above, the Chamber in its Pre-Budget submission has urged for
encouragement to Foreign Direct Investment (FDI) inflows.  If China can attract $ 40 billion
worth of FDI, India does not have to remain content with a mere $ 4 billion inflow. It is in
this context that percolation of reforms at the State level is imperative.  Government’s
programme of reforms with a human face shall remain incomplete without its percolation at
the State level.

We have also suggested for larger investments including FDI in the infrastructure
development programme particularly roads, power projects and housing sectors to
encourage faster industrialization as well as generation of employment.  A distinct push is
also required to encourage manufacturing. Investment allowance needs to reintroduced.   
Government will also have to concentrate more on reducing the revenue expenditure which
has assumed gigantic proportions.

Government has announced implementation of VAT w.e.f. 1 April 2005.  Government should
use the intervening period for dispelling doubts and finalise the roadmap for
implementation including legal framework so that trade and industry are able to understand
and support smooth transition to the VAT regime. The Chamber, on its own, in cooperation
with state governments would initiate intensive interaction to help our members, including
those in the informal sector, in seeking clarifications on the issue .  

(Ravi Wig)
President