New Delhi: The Indo-American Chamber of Commerce (IACC) on Monday suggested a seven-point programme to tame inflationary pressure on the economy.
The suggestion include supply side reforms, use of fiscal and monetary tools and need for capacity augmentation in the manufacturing sector.
"With the inflation figure hovering around 6.46 per cent and threatening to spiral further upwards, it is time for the government to take a realistic view of the situation and address the underlying causes that lead to price spiral," PTI quoted IACC President Deepak Pahwa as saying.
The chamber suggested that the government should monitor the prices of essential commodities like milk, egg and vegetables on a daily basis.
There is the need of a regulatory mechanism for the hedge funds at the earliest as these are mostly unstructured and their movements cannot be easily monitored, it said.
The chamber sought for an 'optimal' use of the country's forex reserve and further relaxation of Capital account convertibility norms.
“The government's plan to create special vehicles for investing in money market abroad should be expedited at the earliest,” it said.
On managing deficit, the chamber suggested there is need to bring down fiscal deficit as the combined deficit of the Central and State governments gobbles up a tenth of India's gross domestic product.
(With agency inputs)
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