Reforms, transparency needed for growth: Godrej

The government has to introduce transparency in decision-making, accelerate policy reforms and improve administration in the wakes of scams like the allocation of 2G spectrum and coal blocks which have virtually paralysed decision-making, feels the Confederation of Indian Industry.

Speaking to reporters in Chennai today, CII president Adi Godrej said, ''Investor sentiment will improve if the decision making process of the government becomes more transparent, which is also our (CII's) agenda – growth through reforms and governance. If this (decision-making) becomes transparent it will also bring down corruption.''

Unveiling the CII theme for 2012-13, 'Reviving economic growth: reforms and governance', Godrej said retrospective tax changes in the annual union budget and the proposed amendments in the General Anti-Avoidance Rules GARR had weakened sentiment.

The high interest rate regime also put a damper on sectors such as automobiles and residential housing apart from slowing down investments, he said.

The CII president said that some of the statements made by recently appointed finance minister P Chidambaram gave hope of some action on these fronts that would put the economy back on to the path of 8 per cent-plus GDP growth by 2013-14.

Stressing the need for accelerating policy reforms in areas like the much-delayed goods and services tax and opening up insurance and multi-brand retail to foreign investment, Godrej also called for transparency in governance, advocating what he termed ''less of case-by-case'' decision-making by government in the sale of national assets.