The Confederation of Indian Industry has said that the fourth-quarter growth figure of 4.8 percent was disappointing, but along expected lines.
Chandrajit Banerjee, Director General, CII, said that with no visible pick up in any key levers of the economy, the situation remains grim. Demand in the system is weak with low levels of consumption, government expenditure and investments.
He added that while the fiscal deficit situation would not allow government expenditure to go up, every means need to be explored for raising consumption and investment demand.
CII has been advocating further easing of the monetary policy with a reduction in repo rate and CRR. In addition procedural easing is required to get stalled investment projects in to the implementation stage.
The Cabinet Committee on Investments has been looking at clearing tranches of Rs 1000 crore plus projects, however, a similar thrust is required for projects at the state level and also for sub Rs 1000 crore projects in the manufacturing domain.
CII looks forward to some movement on issues such as assured coal linkages for the power sector, promoting competition in the mining sector, ensuring fast implementation of projects, reducing subsidies, among others, many of which require non-legislative action in the election year.