Global slowdown could impact demand in India, says Assocham Secretary General

Deepak Sood, Secretary General of the Associated Chambers of Commerce and Industry of India (ASSOCHAM), expressed concern about a possible global economic slowdown, especially in Europe and China. He indicated that this slowdown could impact both demand and exports in India.

On the domestic front, Sood pointed to the uneven monsoon exerting pressure on the inflation of food products. Additionally, the hardening of interest rates could potentially affect consumer demand.

"Global slowdown, notably in Europe and China, could impact demand and exports. On the domestic front, uneven Monsoon has started exerting pressure on the inflation of food products. Hardening of interest rates could also have a bearing on consumer demand," Sood told ETCFO.

Stressing other key risks for the Indian economy and businesses, the ASSOCHAM executive said that the Reserve Bank of India (RBI) has been tightening its monetary policy with an increase in the repo rates. However, the pressure is coming mostly from food articles, dependent on seasonal factors, including uneven rains. Inflation could remain a challenge, though respite is visible in the easing of crude oil prices.

Indian Economy Soars with 6.5 Percent Growth Projection

Sood highlighted the resilience of the Indian economy, noting its ability to forge ahead despite global uncertainties and geopolitical tensions. He underscored that while exports face headwinds due to global events, including a slowdown and high-interest rates, the domestic consumption-driven Indian economy remains robust.

"With its inherent strength, the Indian economy is marching ahead, projecting a growth of above 6.5 percent in the current fiscal. Sectors such as automobile, consumption, tourism, including civil aviation, are performing well. Public investment is gaining momentum in both public and private sectors," stated Sood.

Policy Measures for Corporate Growth

Responding to the question about policy measures to spur corporate growth, Sood emphasized the need for India to continue with reforms across different sectors. He underscored the importance of remaining focused on improving the "Ease of Doing Business" as a crucial driver for corporate growth.