‘Need carrot & stick approach to solve black money issue’

However,he said,“You cannot have two (amnesty schemes)”,adding “only by an absolute carrot and stick approach this issue can be solved”.

The new CII chief also stressed the importance of good governance and the need to curb “misuse of discretion and standards”. He said that there was lack of transparency in public procurement,which was the key challenge for governance”. In fact,if the country wants to become a major destination for global investors,the quality of governance needs to be improved,he said.

A Group of Ministers (GoM) on corruption is also considering whether the discretionary powers of the ministers should be removed.

Further,setting the CII’s agenda for the year,Muthuraman said the country needs as many as 100 mega projects of national importance,which should be put on fast track. For this,he said,CII will partner with the government to identify the projects and set a time line for their implementation.

Speaking about the need of growth in the manufacturing sector,Muthuraman said that the sector has to grow by 12 per cent and increase its overall shares in the GDP so that the country can achieve double digit growth.

Financial reforms like introduction of Goods and Services Tax (GST) and uniformity in the Agriculture Produce Marketing Committee (APMC) Act should be carried out to create a common market.

Muthuraman said India has the capability to enhance production of steel to 500 million tonnes annually by 2050.

“But for that you need to prepare yourself so that 400 million tonnes can be added in next 40 years,” he said. He said that China’s production is over 600 million tonnes and “we are not far behind China in terms of population. So,we need to prepare ourselves to increase our steel making capacity”.

India is currently the fifth largest producer of crude steel in the world with 50.59 million tonnes of production in the April-December period of last year,recording 4.5 per cent growth over the corresponding period last year.