A FICCI survey released on Friday paints a gloomy picture of the Indian economy on the back of business confidence hitting a new low, with 62% Indian industries saying they would rather invest overseas.
"The survey shows that 62% Indian industries find it easier and better to invest outside India, rather than going for domestic investment," said FICCI president Naina Lal Kidwai, releasing the survey on the current state of economy.
Also 77% respondents feel the current business environment is not favourable for capacity expansion. To give an impetus to investments, 90% believe an interest rate cut is essential.
FICCI's committee on hydrocarbon has suggested the government give more incentives to exploration activities of non-conventional energy sources, and improve infrastructure.
"A coordination agency for the energy sector is a must, as there is no coordination amongst the six important ministries dealing with the oil and gas sector. All efforts made in this direction have failed," said RS Sharma, chairman of the committee, and former chairman, ONGC.
"A large amount of untaxed money can be used to widen the tax base and a mere increase in PAN cards won't help," said Sidharth Birla, senior VP, FICCI.
"We're setting up a governance committee, which will act as a model to guide government for universities," said TV Mohandas Pai, chairman, higher education committee.