Industry bodies have demanded immediate corrective steps to revive the economy after the drastic slump in GDP growth rate in the fourth quarter of the financial year 2011-2012.
Industry body, the Associated Chambers of Commerce and Industry of India
(ASSOCHAM), while reacting to the slump during January-March period termed it a clear slide in the economy’s performance during the course of last one year, as growth has fallen every quarter, and this calls for immediate corrective actions.
“No wonder the fiscal numbers were going adverse, it is imperative that investments must be raised as the entire industrial economy has ceded as revealed by the data,” observed ASSOCHAM president Mr Rajkumar Dhoot in a press release issued by the Assocham.
Rajkumar Dhoot demanded improvement in the investment environment while reviewing some tax proposals and further relaxation of FDI norms.
“Such drastic fall in the growth numbers leads to creation of fewer additional job opportunities which is a prime need,” said Rajkumar Dhoot.
Reacting to the GDP numbers another industry body FICCI said in a press release that the decline is not surprising. It said that the slump in the manufacturing sector would severely pull down services sector growth in the coming quarters.
The Gross Capital Formation registered a growth of 5.3% in FY12 compared to the 11.1% last year.
“This shows a grave crisis of investors confidence. We may be in the danger of slipping in to a 1991 like crisis. Therefore urgent and bold steps are immediately needed to prevent the economy from descending in to a full blown crisis. This must be averted at all costs,” said Dr. Rajeev Kumar. Secretary General, FICCI
FICCI added that the current global situation remains fragile and all steps need to be taken on the domestic front to guard against such uncertainties.