NEW DELHI: While displaying concern over the poor factory output figures, industry chamber Associated Chambers of Commerce and Industry of India (ASSOCHAM) has said that it clearly displays the decline in investment sentiment in India. The chamber has said that India needs to urgently reset the policy matrix.
ASSOCHAM President Rajkumar Dhoot said that if India wants to raise investment and push up growth rates, the interest rates need to be revised.
The consumption goods industries are displaying subdued performance. The consumer goods and consumer non-durables are witness slow growth. As, India’s growth is mainly boosted by internal consumption, it is time that these industries emerge as the growth drivers.
But as the fiscal deficit is rising, Dhoot also said there is little space for improving the consumer demand. Moreover, the monetary instruments—interest rate cut — is needed for driving the consumption demand.