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CII statement on GDP figures

The Q4 GDP figures released have reconfirmed CII’s own estimates, which show that the economy is in the throes of a serious slowdown and is performing worse than perception.

At 6.5% growth, the GDP in 2011-12 has grown at lower than the crisis period growth of 6.7 percent. With a huge fiscal deficit and a widening current account deficit, these calls for immediate and bold actions from the Government and the RBI in a coordinated manner, this should be exclusively aimed at salvaging the economy.

Repo rate and CRR cuts are called for as also measures from the Government to kick start the investment cycle, since growth in capital formation has been negative for the last few months.

The Government of India and State Governments have to work in tandem to ensure that major projects that are help up are put under implementation mode within one month. Accelerated depreciation has to be considered to ensure that companies are induced to invest.

In short a comprehensive “Economic Revival Package” has to be announced at the earliest. CII hopes that the political leadership in the country, across party lines would converge on this issue of national interest and actions would be swift and decisive.

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