Addressing representatives at a meeting organised by the Southern Gujarat Chamber of Commerce and Industry (SGCCI) at its auditorium on Saturday, Shah said the central government, contrary to common perceptions, had performed well on the economic front.

On the forthcoming union budget, he said the government should not increase excise on items already being taxed, import duties should remain untouched and the budget should be a bold, growth-oriented one.

While admitting that the proposal was difficult to implement, the CII chief suggested that government subsidy for electricity and agriculture be cut down. ``However, with political parties against the move, it is unlikely for the government to implement this step,'' Shah said, adding that parties could initiate a debate on subsidies to agriculture and electricity by the government.

Referring to at least three meetings between labour unions and organisations with the CII in the recent past, Shah said labour laws were hindering economic growth. He added that while most labour institutions had acknowledged the fact, very little progress had been achieved as far as changing labour laws in the country was concerned. The CII also had a number of meetings with insurance employees, who have outrightly rejected plans to privatise the sector. Stating that the CII was in favour of privatisation in this sector, Shah conceded that it would be some time before progress could be made in this direction.

The CII chief praised the present union government for initiating steps like introduction of the buyback process, attempts to put through the Insurance Regulatory Bill and formation of an Electricity Regulatory Authority. Stating that the CII was opposed to the zero duty import system, he said all goods considered under the zero duty import scheme should be levied a 10 per cent custom duty along with an additional 4 percent duty.

Shah was accompanied by president of the Gujarat Council of the CII Rajesh Maghwani on his visit to the city. Others who spoke on the occasion included SGCCI president Rajendra Chokhawala and Mahendra Kajiwala.