New Delhi : India Inc Thursday expressed disappointment over the country’s economic growth, which slipped to a three-year low of 5.7 per cent in April-June. Industry chamber PHDCCI said ease of doing business remains a major concern as manufacturing firms, particularly labour intensive units, are impacted by various stringent laws and compliance costs. “Going ahead, the breakthrough in GST should also be followed by reforms in labour laws such as a single uniform labour law across the country,” PHDCCI President Gopal Jiwarajka said in a statement. Growth of India’s real GDP at 5.7 per cent in the first quarter is “disappointing” as the industry was in anticipation of rebound from low growth in the last quarter of 2016-17, he added.
He also stressed that there is a need to focus on reforms to improve the ease of doing business scenario, particularly for MSMEs, in order to encourage setting up of more industries. Assocham suggested that policymakers should take urgent steps to revive private investments. The chamber cautioned the government that further downward risks to the growth still prevail in the form of rising crude oil prices due to the Gulf crisis and inventory drawdown in the US that will have its adverse effects on current account deficit and exchange rate. “Continuous fall in fixed investments, unsolved problem of bank’s NPAs, global policy and political risks, tightening financial conditions
on account of deleverag-
ing could weigh negatively,” it added.
Fiscal deficit at 92% of full year target
India’s April-July fiscal deficit stood at 92.4 per cent — or Rs 5.05 lakh crore — of the full year Budget target of Rs 5.46 lakh crore, official data showed here on Thursday. The data furnished by the Comptroller General of Accounts (CGA) showed that April-July fiscal
deficit was 73.7 per cent
of the Budget.
Core sector growth rises to 2.4% from 0.8% Jun
Growth in India’s core industries rose to 2.4% in July from 0.8% the previous month, primarily due to robust growth in steel output, according to data released by the Ministry of Commerce and Industry Thursday. The output index of key core sectors had grown 3.1%
in July last year.
