India's economy big worry for Modi, needs stimulus, says FICCI
Updated : May 28, 2019 06:41 AM IST
The economy grew 6.6 percent in the three months to December - the slowest pace in five quarters - and the Federation of Indian Chambers of Commerce & Industry (FICCI) said the bigger worry was that domestic consumption was not growing fast enough to offset a weakening global economic environment.
Modi - who won a thumping majority in the general election despite the agricultural sector’s economic woes, a shortage of jobs and the stuttering economy - takes the oath of office on Thursday and will need a finance minister who can help navigate through the challenges facing the economy.
The Confederation of Indian Industry, another industry body, said it was crucial to reduce the income tax burden and expand the scope of investment allowance to all sectors, while higher incentives should be given to exporters.