10 Things that will Revive India's Economy

Ajay Shriram, CII Vice President said, “While the global situation,  particularly the difficulties in the advanced economies,  are influencing the Indian economy to some extent, I believe that India’s problems are being exacerbated owing to lack of necessary reforms and decisions internally. For example, our efforts at containing inflation have not been very successful since we have been squeezing out demand in a situation where the supply side needs intervention.” He added, “In my view structural reforms in agriculture is the most important area that needs all our attention, otherwise India would never be able to sustain a high  growth trajectory since supply constraints would come in the way sooner or later.”

According the CII high interest rates and liquidity crunch had made the investment rate decline. The GDP growth in India is led by the investment and so government must take actions to revive the investment cycle and put economy back on high growth. Chandrajit Banerjee the director General of CII said, “The swiftness of Government’s action in this matter is also of great importance since sentiments need a set of positive measures for the investment cycle to kick in.”