India placed better than world economy: ASSOCHAM

Apex industry body Associated Chambers of Commerce and Industry of India (AASOCHAM) has said that India with a GDP growth of 6% is placed better as compared to the world economy which is growing at a meager 2%.

Dispelling the growing signs of negativity during the past few weeks conveying an impression that nothing is going right for Indian economy at the moment, ASSOCHAM president Rajkumar Dhoot noted that the entire world economy was facing the headwinds and that the Indian economy is also not off limits.

"Moreover, India is placed better as the world economy is growing at a meager 2% while we are still above 6%," Dhoot said, adding that global investors, particularly those engaged in the commodities and stocks, were nervous about investing anywhere in the world, let alone India.

Commenting upon the apparent pressure on the government to to cut subsidy bill and its failure to deregulate diesel prices despite repeated announcements sounding its intent, ASSOCHAM general secretary D S Rawat said that though it could be advisable for the government to deregulate diesel prices in view of weak government finances and the delicately poised fiscal balance, coalition pressures are stopping the government from deciding.

"The ground reality is that we have a coalition ruling at the Centre and in several states. Besides, on several issues like Goods and Services Tax, the Centre and states have differences of opinion and nobody wants to cede ground,” Rawat said.

In an appeal to fellow industrialists and economists to 'avoid feeding negativity' in the system, ASSOCHAM remains positive about the Indian economy.

"Not all is lost as the Indian economy depends over 55% on the service sector, which remains robust. Let us retain that strength which will also push the manufacturing. Moreover, if rains pour in adequate quantity, the agri demand will also step in," an ASSOCHAM communique read.

The medium to long term prospects ranging between four-six months are better, added Dhoot.