Commenting on the latest GDP numbers released which estimates growth at 5.3% for the Q2 of this fiscal, marginally lower than previous quarter growth of 5.5%.
Mr RV Kanoria President of FICCI said that "These numbers confirm that economic activity continues to remain sluggish and unless the growth performance in the second half improves considerably, we will have to settle for a sub 6% growth this year. This is not good news for an economy that must generate a large number of new jobs every year."
In fact, the FICCI chief said that "It is essential that the reform agenda is carried forward with vigor and that the recently announced measures are implemented in earnest."
The FICCI chief said that "Only then we will be able to witness a paradigm shift and place the economy on the path of higher and sustainable growth trajectory. At the same time, it is imperative for the government to give a renewed thrust to the manufacturing sector which is not showing signs of any sustained pick up."
Mr Kanoria said that "While it is heartening that investment activity is picking up, with the growth in gross fixed capital formation for Q2 increasing to 4.1%, up from 0.7% growth registered in Q1, it may still be early to say that the slowdown in investment activity has bottomed out."