Finance Minister Pranab Mukherjee will inaugurate the annual general meeting of the Confederation of Indian Industry (CII). |
The two-day event starting on Tuesday comes amid sluggish industrial growth as corporations, squeezed by rising input and borrowing costs, defer planned capacity expansions.
Sluggish industrial growth means lesser job opportunities and smaller pay hikes as corporations stall investment plans, slow down hiring and prune wage bills.
Amid signs of a sputtering economy, the industry had been ratcheting up their demand for cheaper interest rates and friendlier fiscal policies to boost growth.
"Getting Growth Back: Government - Industry Partnership", is the central theme of this year's CII annual summit. This arises in the context of decelerating pace of GDP growth over 2011-12 at 6.9%, which is of concern since the 12th Plan has envisaged GDP growth rate of over 9%.
According to CII, fiscal stimulus options available in the current phase of slowdown are limited due to previous expansionary measures.
"Industry has a responsibility in generating employment and livelihoods with government playing a facilitative and enabling role. Returning to a higher growth path would also ensure generation of revenues that are required for spending on social interventions," a CII statement said.