India Inc. on Thursday demanded an over Rs 1 lakh crore stimulus package to kickstart the investment cycle and boost the Indian economy showing signs of a slowdown.
Industry leaders also said that the government has assured them that it will take action soon to boost India's economic growth.
On Thursday, Finance MInister Nirmala Sitharaman and her ministry's officials met with industry leaders for over three hours to discuss ways to revive growth. Assocham President BK Goenka, who was present at the meeting, said that there is a need to have quick-fix solutions.
“The economy requires a critical intervention by introducing a stimulus package. We have suggested for a package of over Rs 1 lakh crore,” said Goenka.
TV Narendran, vice-president of the Confederation of Indian Industry and managing director of Tata Steel Ltd., said the government sought views on ways to further stimulate the country's economic growth.
“Across the board, we discussed the key issues,” Narendran said, adding that the slowdown in the auto industry would have an implication on the steel sector.
Sandip Somany, president of Federation of Indian Chambers of Commerce & Industry, said monetary policy transmission remains a big issue.
“Banks must be encouraged to pass on the benefits of RBI rate cuts to consumers and borrowers. We are hopeful of further rate cuts. It is encouraging that RBI has reduced rates by cumulative 110 basis points,” he said.
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