The Confederation of Indian Industries said today that investments should be placed on India now. This is the most crucial time in the local economy, according to the regulatory entity, stating that foreign direct investments could alleviate the ailing rupee and ease the current account deficit.
According to the CII's President S.Gopalakrishnan, "Steps taken by the government are very much needed to increase investor confidence and attract FDI into the country; this will address the issue of current account deficit, and I believe it is an ongoing process and expect more easing up in the future."
He said that India needs better results, meaning foreign investments must be present in the country. Analysts noted that due to the upcoming Lok Sabha elections, the highly intense political climate might drive investors away, sinking the economy further down.
"If we look at the last twenty years, we have seen average growth rate of 8-8.5 per cent across NDA, UPA and third front regime," the CII president said to reporters in Bangalore, India. "All political parties support economic growth and job creation in the medium to long term, in the short term there might be political compulsions due to elections and things like that," he added.
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