The Associated Chambers of Commerce and Industry of India (Assocham) has shrugged off sentiments of ‘gloom and doom’ over growth of the economy.
There is no cause for alarm on this front, Mr D. S. Rawat, Secretary-General of the Assocham, told Business Line here.
CONTRASTING VIEW
Mr Rawat had led an Assocham delegation here scouting for investment projects in Kerala, ahead of the ‘Emerging Kerala Global Connect’ event slotted for September.
In the next six months, the country would get back to the path of accelerated growth, Mr Rawat said.
“India’s story just cannot be viewed in isolation from the global trend,” Mr Rawat said. “We have given a good account of ourselves, despite this trend” he added.
“Look at the growth rate. At 6.5 per cent, it might be below potential, but compares significantly well with the 2 per cent logged by the world economy.”
The country has the potential to reverse this apparent slump, swing back into reckoning and become the fastest growing economy in six months.
GOVT COMPULSIONS
“During this phase, there are likely to be losers and winners among various players across different sectors in the economy,” Mr Rawat said.
He chose the services sector, with a 55 per cent share of the GDP, for special mention as it has the greatest potential for turning round the economy.
“We must also understand a coalition government at the Centre will have its own compulsions in choosing the manner to run the Government. “
Mr Rawat said that project proposals worth a massive Rs 141 lakh crore have been pending for clearances.
Only 40 per cent of this has been taken up for implementation; the rest is in ‘limbo.’ But it is unfair to put the entire blame of this state of affairs on the Government.