AIAI express concern on inflationary trend

Mumbai, Feb 27 (UNI) The Economic Survey released by the Finance Ministry clearly indicates the upward bound inflationary trend, the mis-match between supply and demand, which is a cause of concern and needs to be balanced including micro-macro economic issues, Vijay Kalantri, President, All India Association of Industries (AIAI) said.

Government should lay thrust on reduction of excise duties which shall give impetus to domestic production which in return shall take care of the mis-match between the demand and supply and increase the productivity. AIAI further feels that there is a need to lay thrust on agriculture production and sustained infrastructure growth to maintain the GDP growth pegged at 9.2 per cent, a AIAI release said here today.

AIAI felt the cause of inflationary trend may be due to the multiplicity of taxes, impact of petroleum prices and also due to increase in the rate of service tax.

UNI