Industry chamber CII on Saturday said the Indian economy is currently in the midst of a slowdown.
Besides the economic growth slowing down to a nine-year low of 6.5 per cent in 2011-12, other factors including high fiscal deficit, rising prices and deceleration in investment activity have further exacerbated the situation, Adi Godrej, President, The Confederation of Indian Industry (CII) told reporters here.
He said weakening industrial growth was a key cause of concern, but despite the grim outlook, there was some good news.
With the interest cycle turning around, some recovery in capital formation and in GDP growth was expected in the financial year 2012-13, Godrej added. "We thus have ahead of us the herculean task of reviving economic growth. Further, reforms are needed for the economy to get back to prep-crisis growth trajectory. Hence, it is imperative that there is a focus on reforms and governance aimed at revival of growth. This needs structural reforms both at the central as well as the state level," he said.
Godrej said CII has been continuously engaging with the government and political parties in advocating efforts to promote reforms in critical areas of importance to the economy.
