What are the Chamber's views on the new initiatives taken by Modi Government?

PHD Chamber appreciates the investment friendly measures and incremental reforms initiated by the Modi Government. Programs like ‘Make in India’, ‘Digital India’, ‘Launch of Smart Cities’ and ‘Skill India’ would be extremely instrumental in uplifting the manufacturing sector and for job creation. As a result of these measures, India has substantially improved its recent ranking by 12 points to 130 out of 189 countries in World Bank’s Ease of Doing Business Index. India’s macro-economic management is sound. Inflation though not totally under check is in the positive zone. The current account deficit and also the fiscal deficit despite the Pay Commission hike and One-Rank, Pension payout remains under control. GDP growth is above 7 percent, making India possibly the fastest growth economy in the world at a time when the international environment remains far from conducive. 

Do you think that recent initiatives by the Modi Government such as ease of doing business led to improve bilateral trade with our neighboring countries?

Ease of doing business is a part of ‘Make in India.’ India now ranks 130 out of 189 countries in the ease of doing business, moving up four places from last year’s adjusted ranking of 134. The government has announced a number of steps over the last one year to reduce the time taken at ports and airports for necessary clearances for importers and exporters. As per the ease of doing business rankings, it took almost five days to receive a clearance from authorities in ports and borders for exporting goods and almost 11 days for importing goods into the country. India was ranked 133 in this sub-index in the 2016 rankings and I am sure will improve its ranking this year. These initiatives are likely to improve bilateral trade with countries in the nearby region. India attempts to be better placed in the global ranking. Even states are competing to get better ranking. Having said this, the recent move to implement the national good and services tax will lower some of the state-level taxes on internal trade and this will boost exports by taking advantage of opportunities that stem from stimulus programs implemented by Southeast Asian economies. 

Have the Programmes such as Make in India and Digital India initiated by the present Government help in taking our foreign trade to a higher trajectory? How are the major developed countries contributing to the success of these programs?

The Chamber is of the view that initiatives such as ‘Make in India’ and ‘Digital India’ have created a conducive investment climate that has increased FDI inflows into the country along with foreign trade. The recent FDI reforms has brought almost all sectors of the economy under the automatic approval route, making India the most open economy in the world for FDI inflows and foreign trade. The liberalization in the FDI policies would help exporters move up the value chain and help them gain scaling essential for the international markets.