Noting that the investment cycle has been disturbed, he said the manufacturing sector has had an abysmal performance last year. The negative sentiment has affected trade, hotels and transportation sectors which are posed for a slower growth compared to last year.
“The slowdown in economic growth coupled with high inflationary pressure poses a challenge to the macro economic environment.... India can ill afford this trend.
This has serious social consequences since slowdown comes with a decade of jobless growth,” he said.
As per the CSO estimates released in May, inflation continues to be rising with April figure at 8.9 per cent.
