India's GDP is projected to grow at 6.5 per cent in the current fiscal and the country's economy is resilient enough to overcome the short-term impact of geopolitical issues, CII president Sanjiv Puri has said.
In an interview with PTI, he asserted that the country must pursue bilateral trade pacts with key trading partners to protect national interests in the backdrop of increasing trade barriers.
Highlighting that the private investment is picking up across various sectors like energy, transportation, metals, chemicals and hospitality, Puri said the current geopolitical uncertainties could lead to "some cautiousness" in investment.
ALSO READ: India right to act against Pak-based terrorists, industry backs govt: CII
On the economic growth projection for India, he said, "We are looking at 6.5 per cent. We believe this number can be achieved fundamentally, because the fact is, we are starting with a reasonably good foundation, robust economic foundation".
Elaborating on the reasons, he said, "In the recent past, interest rates have eased. Inflation is becoming benign. There is this personal income tax concession taking in from the first of April. Investments picked up in public and private space in the latter half of last year".
Also Read
India right to act against Pak-based terrorists, industry backs govt: CII
CII extends unequivocal support to govt, Armed Forces on Operation Sindoor
CII releases guidebook on adoption, governance of AI for board leaders
Stronger judicial data grid can boost investments, says CII report
Rank states based on case-clearance rate for faster dispute resolution: CII
On the high tariffs proposed by US President Donald Trump on several key economies and the trend of rising protectionism globally, Puri acknowledged that "more and more barriers to trade are coming in right now", suggesting that India should do bilateral trade agreements which are mutually beneficial and in the national interest.
"Therefore, the countries that India is pursuing, and the big ones among them, being the US and EU, are important. We should do whatever we have to do from a national interest perspective, and I think, most important is these bilateral trade agreements".
He also recommended the creation of a three-tier tariff architecture for certain areas to enhance competitiveness.
The CII president also emphasised the need to focus on the domestic drivers of growth and competitiveness.
He observed that a lot of work needs to be done on agriculture, climate change and adaptation.
"These domestic drivers of growth and competitiveness are where we should really press the pedal hard so these can kind of offset some of the uncertainties. I think further interest rate easing is another expectation," Puri said.
The rural demand is picking up, while urban has been a little flat, although it also should start moving up in a couple of quarters, he added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Connect with us on WhatsApp
More From This Section
Govt to hold pre-emption right over oil, gas in emergency: Draft rules
India-UK FTA a positive step; car prices unlikely to change: BMW, Mercedes
India must ensure balanced, reciprocal terms in US trade deal: GTRI
Premium
Retail inflation slid further to 3% in Apr; easing room for RBI rate cut
Premium
'US-UK FTA can serve as launch pad for Indian firms to enter US mkt'
The government will hold pre-emption rights over all oil and natural gas produced in the country in any event of national emergency, according to draft rules being framed under a revamped oilfields legislation.
A pre-emption right (or preemptive right) is the legal right of a party - often a government or existing shareholder - to purchase or claim a product, asset, or resource before it is offered to others.
The inclusion of such rights over crude oil - extracted from underground or beneath the seabed and refined into fuels like petrol and diesel - as well as natural gas, which is used for power generation, fertilizer production, CNG for vehicles, and piped cooking gas, is intended to help the government prioritize national interests and ensure public welfare during emergencies.
ALSO READ: Oil prices rebound nearly 3% after drop, but oversupply fears weigh
The producer of oil and natural gas will be paid a "fair market price prevailing at the time of pre-emption", the draft rules said.
Ministry of Petroleum and Natural Gas has invited comments on draft rules after Parliament earlier this year passed the Oilfields (Regulation and Development) Amendment Bill which replaced outdated provisions from the 1948 Act, to boost domestic production, attract investment, and support the country's energy transition goals.
Also Read
Premium
India strikes back: India's grain, fuel stockpile prepare it for any crisis
Oil retailers pick 26 PACS to set up retail petrol, diesel outlets: Shah
Govt to provide $647 mn to support strategic reserve oil purchases in FY26
ISPRL seeks private firms to build 2.5 mn tonnes petroleum reserve at Padur
ONGC awaits mining lease for new oil field discoveries in WB's Ashokenagar
"In the case of a national emergency in respect of petroleum products or mineral oil, Government of India shall, at all times, during such emergency, have the right of preemption of the mineral oils, refined petroleum or petroleum or mineral oil products produced from the crude oil or natural gas extracted from the leased area, or of the crude oil or natural gas where the lessee is permitted to sell, export or dispose of without it being refined within India," the rules stated.
This right will be exercised by providing a "fair market price prevailing at the time of pre-emption to the lessee by Government of India, for the petroleum or petroleum or mineral oil products or the crude oil or natural gas taken in pre-emption."
ALSO READ: Mahanagar Gas shares gain 3% after Q4 results; check details here
The rules however did not define what would constitute a national emergency. Industry sources said war or war-like situations - like the one that the country faced in the military standoff with Pakistan - or natural disasters could constitute a national emergency.
"Government of India shall be the sole judge as to what constitutes a national emergency in respect of mineral oils, and its decision in this respect shall be final," the rules said.
The draft rules also provide for oil and gas operators being exempt from their obligations under the Act in force majeure conditions.
Force majeure includes an act of God, war, insurrection, riot, civil commotion, tide, storm, tidal wave, flood, lightning, explosion, fire, earthquake, pandemic and any other happening which the lessee could not reasonably prevent or control, the rules added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
More From This Section
India-UK FTA a positive step; car prices unlikely to change: BMW, Mercedes
India must ensure balanced, reciprocal terms in US trade deal: GTRI
Premium
Retail inflation slid further to 3% in Apr; easing room for RBI rate cut
Premium
'US-UK FTA can serve as launch pad for Indian firms to enter US mkt'
FM asks banks to stay alert, says financial system remains robust