FICCI sees SEZs as key to growth

Staff Reporter

Government urged to target 15% growth in industrial GSDP Government
urged to target 15% growth in industrial GSDP

CHENNAI: Special economic zones and industrial parks are key to
industrial growth and must be speedily constructed across the State
within the next two years, according to the Federation of Indian
Chambers of Commerce and Industry's Tamil Nadu State Council (FICCI-TNSC).

In its pre-budget recommendations, the FICCI-TNSC urged the Government
to target a 15 per cent growth in the industrial Gross State Domestic
Product by 2011 through these special regions, offering tax exemption
and infrastructure access on a public-private partnership basis.

To encourage widespread growth, the Government must encourage small and
medium enterprise clusters and dispersion of industry to Tier-II and
Tier-III cities by providing world-class infrastructure, it said.

Effective e-governance and self-certification for various clearances
should also be introduced.

It urged the Government to seek autonomy for the States and ensure that
the Centre pegged the comprehensive Goods and Services Tax at 10 per
cent, moving towards a dual VAT system.

In the next five years, the services sector should grow by 10 per cent,
with a focus on software-related services.

To achieve 4 per cent real growth in the agricultural GSDP by 2011, the
Government should encourage corporate farming and set up agriculture
export zones with state-of-the-art facilities to package, brand and
market the produce.

On the human development front, the FICCI-TNSC wanted the Government to
increase its spending to 4.1 per cent of the GSDP on education and one
per cent on healthcare.

http://www.hindu.com/2007/03/20/stories/2007032017590800.htm