In a statement released over WPI inflation data, FICCI said that the continuous decline in inflation levels underscores the need for an urgent revival in consumer demand, which will benefit better capacity utilization and spur investments.
Stating the prevailing global headwinds, Dr. Jyotsna Suri, President, FICCI said these are the most critical factors for firming up India's growth aspirations."
"India remains a net importer of key commodities and given the muted global prices, the possibility of any immediate risk of importing inflation remains minimal," she added.
Under the present circumstances, it would be most appropriate for the RBI to consider growth considerations and announce a deeper cut in the policy rate.
