Need to further fuel drivers of consumption, private investment: Industry

There is a need to further fuel the drivers of household consumption and private investments to enhance the aggregate demand in the economy, industry chamber PHDCCI said on Sunday.

It added that the government should frontload the National Infrastructure Pipeline (NIP) expenditure as increased spending on projects will give a multiplier effect to rejuvenate the aggregate demand in the economy.

More and more direct benefit transfers need to be considered for the urban and rural poor under various welfare schemes, in addition to the free distribution of dry rations, PHDCCI President Sanjay Aggarwal said.

The chamber projects a double-digit GDP growth trajectory at 10.25 per cent in 2021-22, supported by the effective policies of the government and improved business sentiments.

The improvement in key economic indicators is signalling broad-based recovery in the coming months which will be higher than the pre-COVID economic activity, he added.

"At this juncture, there is a need to further fuel the drivers of household consumption and private investments to enhance the aggregate demand in the economy as it will have an accelerated effect on expansion of capital investments in the country," Aggarwal said.