Listing out the disadvantages of the domestic industry vis-a-vis imports, the apex industry association also opposed Prime Minister Atal Bihari Vajpayee's announcement of lowering investment limit for small scale industries (SSI) sector from Rs 3 crore to Rs 1 crore.

Addressing his maiden press conference, CII president Rajesh Shah called for an across the board hike in import tariff by imposing an additional 5 per cent duty in the forthcoming budget. ``We feel that retaining the Rs 3 crore investment limit for SSIs will allow the units to access technology apart from being competitive in the cost and quality front,'' he said.

The previous Finance Minister had reduced the customs duty in the previousbudget. This led to large scale of dumping of products especially in steel and fibre intermediates. The argument is that the domestic industry is at a disadvantage as cheaper imports of various products have affected the prospects of Indian companies who are already facing demand recession and rise in input costs.

CII also sought an increase in the capital expenditure from the present 6.1 per cent to 7-8 per cent of the GDP. The capital expenditure in the infrastructure sector needs to be stepped up from 5.5 per cent to 7-8 per cent, regulatory authorities should be set up, economically viable targets should be introduced, and implementation of projects should be monitored, are some of the points the apex industry association has emphasised.Shah called for massive resource mobilisation through PSU reforms, opening up of infrastructure sector, and reforms at the state-level. The CII president called for an across-the-board hike in import tariff by imposing an additional 5 per cent duty in the forthcomingbudget.

Shah also targeted a GDP growth rate of 7 per cent for 1998-99 on the basis of a strong 9 per cent industrial growth, exports growth at 15 per cent and agriculture growth rate at 2.5 per cent. Highlighting the need for housing, CII recommended it should be granted infrastructure status, housing finance interest rates should be reduced to 10 per cent, stamp duty should be reduced, and ULCRA should be revamped.

CII president suggested two-pronged strategy for India's economic development. The short-term measures, relating to the economy, cover 15 major steps including agriculture, capital expenditure, resource generation, revenue expenditure, subsidies review, insurance, markets, exports, financial sector reforms, capital market and taxation measures. In the longer term, he announced CII's new initiative in four areas, governance, population, technology and information technology.

CII suggested a set of economic targets for the year 1998-99 which include higher growth rate of GDP (7 per cent),agriculture (2.5 per cent), industry growth (9 per cent), services (8 per cent), exports (15 per cent), imports (17 per cent), FDI (US $ 5 billion), savings (28 per cent), inflation (7 per cent), and foreign exchange reserves (US $ 30 billion).

Shah said that Indian companies should be given more freedom to select their foreign partners and decide the terms. Foreign direct investment (FDI) flow should be automatic and transparent. The functioning of the FIPB also needs to be made simpler.