India’s slowing economic growth is of serious concern and the country needs to urgently cut tax and interest rates to revive the economy, a top industrial body said on Monday ahead of the inauguration of Prime Minister Narendra Modi’s second term.
The economy grew 6.6% in the three months to December – the slowest pace in five quarters – and the Federation of Indian Chambers of Commerce & Industry (FICCI) said the bigger worry was that domestic consumption was not growing fast enough to offset a weakening global economic environment.
“The recent signs of slowdown in the economy stem not only from slow growth in investments and subdued exports but also from weakening growth in consumption demand,” FICCI said in a statement suggesting various measures the government could adopt in the next budget expected in a month.
“This is a matter of serious concern and if not addressed urgently, the repercussions would be long term.”
Modi – who won a thumping majority in the general election despite the agricultural sector’s economic woes, a shortage of jobs and the stuttering economy – takes oath of office on Thursday and will need a finance minister who can help navigate through the challenges facing the economy.
Agencies
