The Modi government's proposed changes to the Land Act will help both landowners as well as the industry.
That's the view of Rajesh Shah, former CII president and co-author of the book Resurgent India. In an interview with CNBC-TV18's Rituparna Bhuyan, also shared his views on the exchange rate and Indian exports.
Excerpts from the interview on CNBC-TV18.
Q: What's your view on the controversy surrounding the Land Act?
A: We firmly believe that the Land Acquisition Act of 2013 was retrograde. Now the government has also come out with something which is different, which is modified and modified it correctly. Of course they have a political issues but politics has to find solution if the ultimate aim is to provide for those who were the land owners and are now going to lose it and also provide land for various forms of industry and for infrastructure.
Q: You have talked about exports being a key strategy to promote growth and towards that you have maintained that the exchange rate is stable and in fact you have gone forward and said that India should actually look forward to an exchange rate of around Rs 65/USD but we do not follow that kind of practice as far as controlling the exchange rate is concerned. So are you basically suggesting that we should now start controlling the exchange rate as well?
A: No, we have not said that we would like to control the exchange rate. Exchange rates have to be allowed to be float according to the economic conditions prevailing.
What we have said is that there could be a sense that let us keep the rupee strong but that is almost like a political kind of feeling. The rupee has to be allowed to be competitive. A good benchmark has to be around Rs 65, possibly it could go even lower. This would enable us to become far more competitive as far as exports are concerned.
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