IBNLive Chat: '9 pc growth only if rural economy strengthened'

GROWING PANGS: The economy can grow at 9% plus, feels CII Economic Policy Head

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As the D-day nears, all eyes are set on Finance Minister P Chidambaram. India Inc. awaits with bated breath as the FM gears up to table the annual Budget in Parliament.

What is there for the industry in Chidambaram's 7th Budget? Will the US recession have an impact on the Indian scene?

To find out all the answers, IBNLive.com organised an online chat with G Srivastava, Head, Economic Policy, CII.

Here we reproduce the full text of his chat.

Harron: Sir, what about the women tax rebate this year?

G Srivastava: There is already a differential tax exemption limit for women income earners. To encourage women to take up jobs and to put more purchasing power in their hands, let us hope that there is something in this budget too for women.

Sonal: Can senior citizens look forward to any good news in this Budget? shouldn't the FM give sops to single and working women?

G Srivastava: Corporate contributions to senior citizen / veteran homes should be provided with tax benefits.

Pratigyan Das: Sir, what are the three things you would like to be introduced in this year's budget?

G Srivastava: Initiatives that would build people through education, skills development and healthcare. Initiatives that would strengthen rural economy through greater role for private sector in the agriculture sector, initiatives that would enhance competitiveness of Indian economy through encouragement to R&D, implementing financial sector reforms and greater focus on infrastructure development.

Aditya Badami: As the world is moving to a carbon free economy, do we see the Finance Minister coming out with plans to help the Renewable Energy Industry.

G Srivastava: CII has recommended creation of a climate-friendly technology fund to financial all those technologies that are environment friendly. This fund could finance clean technology development.

Raghav: I think we all agree that we need a wider participation in the economy from all sections of society. How do you think the FM can improve development of rural economy better. I think thats required for a long term sustained growth of indian industry.

G Srivastava: Inclusive growth is necessary to sustain high rates of growth. strengthening then rural economy is of pivotal importance, providing an enabling legislation for universalisation of financial services through Micro Finance is also importance. Moreover, creating livelihoods for the major sections of the population that lives in the rural areas is also necessary. CII's rural business hubs initiative was adopted by the Government and CII has recommended that the RBH allocation should be scaled up to 1,000 crs this year.

Rajat: Should we be expecting some relief package for export sector from this budget?

G Srivastava: CII has recommended sections 80 HHC - HHE to be reintroduced to provide relief to exporters.

Mohan: Chidambaram claims the credit for the GDP growth for the past few years. But the truth is it is because of great people like Narayana Murthy India could achieve this growth. Now the US is in trouble and it will have an impact on our IT business which was the real engine for our economy for the past few years. Total tax paid is going into the drainage called Government. Chidambaram is looking around for inclusive growth when he himself is the hurdle for inclusive growth. What is your comment on this. In such a situation how do you think this economy will grow 9 per cent per annum for the next few years. Thanks