FICCI comments on GDP data, says economy is 'back on track'

Federation of Indian Chambers of Commerce and Industries (FICCI) here today said that the Indian economy has witnessed a gradual rise in consumption activity, thus evading the repercussions of the November 8 demonetisation drive.

"The process of remonetisation is complete and consumption activity is gradually picking up. According to FICCI's latest surveys the effect of demonetization is expected to wane off by June 2017", said Dr. Didar Singh, Secretary General, FICCI.

Speaking on the impact of the Union Budget 2017-18, which was presented on February 1, 2017, experts say that all initiatives have been channeled to strengthen the domestic economy. Further, growth is expected to recover in the coming financial year.

"It is extremely critical to push the domestic capex cycle which has been persistently weak. We are hopeful that going ahead the planned increase in public expenditure, will crowd in private investments. We also look forward to a further reduction in lending rates by the banks. This will help boost consumption and prop-up investments through low-cost finance," added Singh.