High inflation, low consumer demand may affect investments: Industry

[SUKUHOPES]

High inflation and low consumer demand may affect the investments that
are at the conceptual stage, industry leaders today told finance
minister P Chidambaram in an interactive session called to review the
industrial activity in the country.

However, Chidambaram assured industry representatives that the economy
would continue to grow at 8-9 per cent despite pressures from high
inflation and rising interest rates.

“The minister has assured us that this growth rate should be
sustainable for the next few years,” Confederation of Indian Industry
(CII) President K V Kamath told reporters after an interaction with
Chidambaram. According to CII, investments worth $700 billion would
take place over the next three years. The key issues discussed in the
meeting were consumer demand and investment bottlenecks.

N.Sukumar
Research Analyst