‘We must take all possible measures to ramp up domestic demand’

India Inc, on Friday, urged Prime Minister Manmohan Singh to convene an all-party meeting before the Budget session of Parliament to discuss the state of the Indian economy.

“We urge the Prime Minister to take a major political initiative so that intra-party differences over some critical issues like the Goods and Services Tax (GDT) and the Direct Tax Code (DTC) are resolved before the Budget session commences,” Raj Kumar Dhoot, President, ASSOCHAM, said in a statement.

Such a meeting was necessary to find a political consensus on key economic issues which were blocking the push so urgently required to revive the economy, he said.

FICCI president Naina Lal Kidwai expressed concern over the decelerating growth of the services sector, which had so far been the key driver of growth. The need to revive the investment sentiment had become indispensable, she said.

“At a time when the global economic situation is uncertain, and our exports are feeling the heat, we must take all possible measures to ramp up domestic demand so that our economic performance does not deteriorate any further,” she said.

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