Step up, India Inc

A great deal of heavylifting by corporates is required to pull the economy out of the troughs created by the coronavirus pandemic. Business houses have to walk the extra yard during tough times. It is important for businesses to move out of their comfort zones and participate in the India growth story and make the $5 trillion economy a reality.

The government’s move to end retrospective taxation has sent positive signals and now it is the turn of corporates to ensure the country’s growth engine does not face any disruptions. The government has sacrificed revenue to accommodate the needs of the existing investors and concerns of prospective ones to improve ease of business.

Prime Minister Narendra Modi, in his address to India Inc, conveyed in a very simple manner that now it is the turn of the industry stakeholders to increase its risk-taking appetite and step up investments, especially in research and development. He reiterated that to make on-ground progress on the Atmanirbhar Bharat initiative, corporate houses have to increase rate of investment and employment opportunities.

Although the Covid-19 pandemic has thrown a spanner in the works for most capex programmes, the industry needs to work out workable plans in consultation with lenders to ensure economic growth is not hampered.

‘Animal spirits’ should not only remain a passing reference. Reforms in taxation is a welcome step and should help in bridging the trust deficit between the Centre and India Inc.

The government has taken one step forward. Now, corporate India has to reciprocate. At stake is not only growth but also the need to create employment in the country. With the second wave ebbing, business sentiments and consumer confidence rising, it is time for industry to take proactive steps to steer the country out of the economic rut. There is new life in the exports. Industry captains have to take forward the momentum in external trade and create opportunities in the domestic market.