The Industry Chamber, the Confederation of Indian Industry of CII, sought further stimulus packages to boost growth, considering the Indian economy is likely to slow down further and grow below 7% in the second half of fiscal, reported media.
In its report on the economic status, the industry body also asked the Reserve Bank of India for more cut in interest rates, given subdued prices that may fall further during 2009-10.
The chamber is of the view that the services sector that remained buoyant, despite global crisis, might affect by drop in overall business prospects. However, as business opportunities in banking and finance, real estate, trade, hotels and transportation sectors are drying up, there is a potential for further decline in services sector.
CII further stated that social and personal services would remain buoyant, considering the government spending on these sectors. On investment growth, the industry body feels the recession is likely to result into further deceleration, while the government and private consumption would remain less affected.
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