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Chidambaram outlines six-point agenda for 8 per cent growth
New Delhi: The finance minister, P. Chidambaram, has outlined a six-point reform agenda to enable the economy to achieve and sustain annual growth rates of eight per cent and above in the coming years.

Addressing the India Economic Summit 2005, Chidambaram expressed optimism that the reform agenda, two each in agriculture, industry and services, along with the required ability to complete infrastructure projects ahead of schedule, would help the economy move into the eight per cent growth trajectory.

"We are acutely conscious that there is huge infrastructure deficiency in this country. What we lack is a killer instinct. The difference between China and India in implementing infrastructure projects is that we are committed to implementing them efficiently. China is committed to ruthless efficiency," he said.

The finance minister expressed confidence that the Government's recent initiatives to establish a special purpose vehicle (SPV) for infrastructure financing and the formulation of a scheme for viability gap funding would give a fillip to infrastructure activities.

Chidambaram said that there is a need to allow more foreign direct investment (FDI) in industry. Speaking to newspersons on the sidelines of the summit, Chidambaram said that the Commerce Ministry has initiated a public debate on FDI in retail and expressed the hope that the Ministry would, in the coming months, be able to arrive at a solution that satisfied all concerned.
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FICCI survey: Sales, investment, exports to see surge in next six months
New Delhi: According to FICCI's second quarter Business Confidence Survey, India Inc expects a surge in sales, employment, investment and exports in the next six months.

According to the survey, the surge is expected to occur on te back of strong demand conditions and a pick-up in industrial activity.

The survey says 74 per cent of the respondents feel that current overall economic conditions are `moderately to substantially' better compared to the last six months.

The survey includes responses from 425 companies, with turnover ranging from Rs1 crore to Rs20,000 crore from sectors such as pharmaceuticals, textiles, food and beverages, heavy equipment and machinery and financial services. Fifty per cent of the respondents represent the heavy industry sector, 35 per cent are from light industry while 15 per cent are from the services sector.

Eighty six per cent of the respondent companies expect `higher- to- much higher' sales in the next six months. Sixty five per cent expect `higher -to- much higher' profits.

The survey indicates that despite a slow start at the beginning of the second quarter, industrial activity is picking up and one can expect strong growth in the remaining two quarters of the current fiscal.
The strong demand conditions prevailing in the economy are resulting in high capacity utilisation levels at the firm level, with 70 per cent of the firms in the present survey reporting capacity utilisation levels of over 75 per cent.

In fact, the proportion of firms citing weak demand as a constraining factor has declined to 18 per cent in the present survey and is the lowest proportion seen in the last 14 quarters.

The increasing raw material costs and freight charges is a serious concern for companies, says the survey. Seventy six per cent of the firms reported rising cost of raw materials as a constraint.
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