New Delhi, Nov.12 (ANI): Two key macro indicators of retail inflation inching up to five per cent in October and industrial growth slowing to 3.6 per cent in September, 2015 clearly point out that the Indian economy still faces several tough challenges, ASSOCHAM Secretary General D S Rawat said on Thursday.
While the capital goods sector has shown double digit growth, there are several others which suffer from the demand slowdown. A sharp fall in exports has added to the woes of the industry reeling under high level of debt and inability to increase earnings, Rawat said.
On the other hand, the retail inflation can create some discomfort with the RBI which may not be left with more room to cut the interest rates. However, the CPI inflation has zoomed up largely by over 42 per cent year on year rise in prices of pulses. Effective strategy to deal with the situation is required so that the headline number does not convey an impression of inflation returning, he added. (ANI)