Outlining a remedy for the prevailing economic slowdown at a press conference here on Tuesday evening, Ficci president Sudhir Jalan stated the government should announce policy measures such as export subsidies and cost concessions which are not in direct violation of the WTO norms in order to make Indian exports more competitive.

In addition, Ficci has called for short-term excise reduction to bring down prices and stimulate demand. It has also called for clear-cut policy to pep-up exports in the short, medium and long term.

The chamber will soon bring out a strategy paper for the economic management delineating long, medium and short term measures for rejuvenating the economy, Jalan announced.

"To induct dynamism in the industry, some supportin a calibrated manner can be given to certain segments of industries even if it is not in tandem with WTO norms," the chamber stated.

The chamber took the plea that countries in the European Union and the United States have been taking short-term measures discreetly or openly without WTO taking an exception. Therefore India too should take a plunge and announce measures necessary in the short term to induct dynamism in certain segments of industry.

In the event of WTO taking an exception, the chamber felt that "these things can be negotiated and settled with WTO later". The industry would, however, get a lead time while the issues are settled with WTO, Ficci reasoned.Justifying the demand for short-term excise duty cut, Jalan pointed out that the industry has been underperforming for some time now. "Demand can be stimulated with some short and long term measures." He added in the short term, excise reduction could be extended to industries such as cement and steel.

The chamber asserted that nurturingthe domestic capital goods industry was important. Ficci felt that the zero duty being allowed for import of power equipment and petrochemical projects should not be allowed to adversely affect the competitiveness of domestic capital goods. Moreover, deemed export status could be given to the domestic capital goods industry, the chamber stated.

Additionally, the chamber underscored the need to step up plan expenditure with a clear focus on capital expenditure. Ficci felt increased allocation on capital head will stimulate demand both for industrial and consumer goods.As for further liberalisation of the economy, the chamber felt that the initiatives should now come from the state governments. Jalan said other states across the country should follow the initiatives taken by governments of Andhra, Tamil Nadu, Karnataka and Uttar Pradesh.

"It is advisable that they come out with the new labour laws, land acquisition guidelines and safety net to to accelerate the flow of investment. If there are any technicalhitches for the states to carry out such legislations, they should be empowered to do so," Jalan stated.