Apex industry body ASSOCHAM today strongly condemned a sense of negativity that has been doing rounds during the course of past few weeks conveying an impression as if nothing is going right for Indian economy at the moment.
“The entire world economy is facing the headwinds and Indian economy is certainly not off limits,” said Rajkumar Dhoot, president, ASSOCHAM, adding, “Moreover, India is placed better as the world economy is growing at a meager two per cent while we are still above six per cent.”
“There are no doubts that Indian economy has been facing sort of a bumpy ride over the past few months and even the government has not done enough to send a strong signal amid investors that problems facing the economy will be fixed,” said Dhoot.
“But creating a negative impression is grossly unfair to the inherent strength that our economy has shown in the past as it is not the first time that the growth has decelerated,” he said, adding, “The moot question is which part of the world is growing, even our immediate neighbor and economic giant China is showing signs of fatigue in various segments of its economy.”
The global investors, particularly those engaged in the commodities and stocks are nervous about investing anywhere in the world, let alone India. The investor, all around the world is confused as one day he bets on gold considering it a safe haven and next day, he shifts to dollar as an asset class and is shuffling day in day out, displaying signs of uncertainty and nervousness, added the ASSOCHAM chief.
“Unfortunately, the government finances are not in a healthy situation and the fiscal balance is delicately poised. Under the given circumstances, there is a pressure on the government to cut its subsidy bill and maybe it is advisable to deregulate the diesel sector,” said D.S. Rawat, secretary general of ASSOCHAM.
“But the ground reality is that, as the political leaders have highlighted, we have a coalition ruling at the Centre and in several states. Besides, on several issues like Goods and Services Tax, the Centre and the states have differences of opinion and nobody wants to cede ground,” said Rawat.
Under such a precarious global situation, it would not be fair to judge the Indian economy solely and blaming it all on the so-called policy paralysis as there is a sense of pessimism across the globe and the demand together with the consumer confidence gets affected anyway, observed Dhoot.
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