NEWSLINKS
BUDGET 2000 LIVE!
BUDGET ON REDIFF
D&B BUDGET SPL
ECONOMIC SURVEY
RLY BUDGET
BUDGET: RUN-UP
BUDGET PROCESS
BUDGET HOTLINKS
Y2K BIZ FEATURES
INDIA & THE WTO
GOVT&ECONOMY
SPECIALS
INTERVIEWS
COMMENTARY
CREDIT POLICY
BUDGET 1999-2000
USEFUL INFO
ARCHIVES
SEARCH REDIFF

Weak capital formation rattles industry bodies

Industry chambers today said the Economic Survey for 1999-2000 reinforced the industrial recovery, but expressed concern over decline in agriculture production and capital formation.

''The significant growth in the core and infrastructure sector which has grown by 8.2 per cent in 1999-2000 from a meagre 2.8 per cent in 1998-99 is indicative of a major structural turnaround,'' President of the Federation of Indian Chamber of Commerce and Industry, G P Goenka said.

However, he listed drastic reduction in the agricultural production by negative 2.2 per cent from 7.4 per cent as an area of growing concern. He also expressed concern over decline in public savings, deceleration in disbursements and decline in corporate formation.

President of the Confederation of Indian Industry, Rahul Bajaj, was generally content with the economic recovery. But he wanted the government to have strong political will to take tough decisions and overhaul the subsidies system in the budget tomorrow.

He also wanted enactment of the Fiscal Responsibility Act and adoption of zero-based budgeting.

''Substantial improvement in infrastructure this year is a healthy sign and will help in achieving sustained economic growth,'' President of the Associated Chambers of Commerce and Industry of India, Shekhar Bajaj, commented.

UNI

Budget 2000 Live! | Budget on Rediff | Dun & Bradstreet Budget Special | The Run-up
Budget Process | Budget Hotlinks | NDA Government & Economy
Ministry of Finance: Economic Survey 1999-2000 | Budget 2000 document

Tell us what you think of this Budget 2000 coverage