While
measurement of corporate performance does not lend itself to a precise
assessment within a short span of six months, it cannot be denied that a
down-turn in industrial performance adversely affects the corporates. The rate
of growth of sales of the listed manufacturing companies in the private sector
declined from an average of 28.8% in the first quarter of 2010-11 to 11.4% in
the second quarter of 2012-13 and the ratio of net profit to sales also
declined. Giving this information in written reply to a question in the Rajya
Sabha, Shri Sachin Pilot, Minister for Corporate Affairs, said that several
measures have been initiated by the Government to uplift the overall business
sentiment, boost investment and strengthen industry. These include, inter alia,
announcement of the National Manufacturing Policy, implementation of Delhi
Mumbai Industrial Corridor Project, liberalization of Foreign Direct Investment
(FDI) policy, setting up of the e-BiZ to promote ease of doing business and
enactment of the Companies Act, 2013.
Further,
the Cabinet Committee on Investment has been set up to monitor investment
proposals as well as projects under implementation, including stalled projects,
and guide decision making in order to remove bottlenecks and quicken the pace
of implementation. In his Budget Speech for the year 2013-14, the Finance
Minister has also proposed to introduce an investment allowance for new high
value investments to attract new investment and to quicken the implementation
of projects. Impact assessment of these measures has not been conducted.
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