India Inc wishlist has simple tax, energy reforms

The corporates also stressed on evolving domestic market, better energy reforms and enhanced focus on special economic zone.

Optimistic about India sustaining the growth rate, India Inc has drawn up a wishlist for Budget 2006-07 to ensure it remains on track.

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The corporates also stressed on evolving domestic market, better energy reforms and enhanced focus on special economic zone (SEZ) in a brainstorm on managing India organised recently.

"We are reasonably hopeful that the country will sustain the pace but we require the government to pay attention on agriculture, infrastructure, social sector and good implementation," Tata Sons Executive Director R Gopalkrishnan said.

Ambit Corporate Finance CEO Ashok Wadhwa felt that country remains poor on tax compliance because of weakness within the system. "Our expectation will be no new tax," he said stressing that tax structure continues to be penal.

Mckinsey Director Ranjit Pandit felt India falls short due to government policies.

"The FMCG sector has shown a slow growth because of high taxes and the indicators are to build a strong domestic market for its growth," he said.

"The SEZs should be in the scale of China spread in hundreds of hectares," he said.

Stressing that sectors shackled by the state are not growing, Shell Chairman Vikram Singh Mehta highlighted the poor physical and energy infrastructure as deterimental to growth.

"Government should provide right framework of innovation and growth while some incentive should be provided to companies for investing in non-renewable energy," he said.

Executive Vice President DSP Merril Lynch Andrew Holland suggested a cut in subsidy to overcome the deficit.

"India's growth story lead to FII fund inflow in India and a reduction in subsidy will attract them further," he said.

Glaxo SmitheKline Managing Director S Kalyansundaram expressed concern over neglect of the health sector and poor labour reforms.