With the centre overshooting its full-year fiscal deficit target in the first seven months (April-September) of the current fiscal, Federation of Indian Chambers of Commerce & Industry (FICCI), on Thursday said investment activity is back on account of government spending.
In an interview to CNBC-TV18, Rashesh Shah, president, said the government should not slowdown spending since we are seeing consumption slowing down.
Shah said the government continuously reiterated that the fiscal prudence will continue, but it needs to remove pressure from rural and agriculture sectors.
"Non-banking finance companies (NBFC) have not become third of the incremental credit and they are 20-25 percent of the existing credit. So we need a framework and there are different kinds of NBFCs and housing companies, so we need a governing framework and we need an approach paper. I hope that RBI deliberates on this and how to formalise the framework of NBFC even further than what they have done up till now," Shah said.