Major industry and chamber bodies on Monday said the robust GDP growth would boost the confidence of industry and maintained that further capacity creation would depend on the availability of funds.
Federation of Indian Chambers of Commerce and Industry of India President Rajan Bharti Mittal stressed that the economy was growing due to the strong performance of the manufacturing sector in the past four quarters and said it was critical to maintain the high growth in this sector.
He demanded that the broad macro economic tools be fine-tuned accordingly and warned that hiking of interest rates at this point would act as a break on the overall growth process.
Associated Chambers of Commerce and Industry of India President Swati Piramal said the numbers were encouraging enough to raise hopes of the economy moving close to 9 per cent in the current fiscal.
Dr. Piramal's thrust was that funds should be made available to the infrastructure sector so that all the key six core industries substantially contributed to the GDP. She was also confident that further liberalisation in FDI policy and the proposed changes in the tax structure and GST would lend pace to growth.
Confederation of Indian Industry Director General Chandrajit Banerjee said the rebound in GDP was due to a sharp recovery in the investment momentum and expressed confidence that the trend would continue resulting in a significant capacity creation. He, however, expressed concern over private consumption demand.
PHD Chamber President Ashok Kajaria said the growth would have had been much better if agriculture had performed much better.