The slowdown prevailing in the current times has been a concern for the policy makers who are coming forward with alternatives to counter it.
A leading representative of Indian industry, ASSOCHAM says that it is small and medium enterprises (SMEs) and the rural sector that can actually boost the Indian economy.
Assocham president Sajjan Jindal said, "Rural area starts rebuilding and then the industry starts rebuilding."
Further he says that the high interest rates prevailing in the sector is hampering its growth and thereby posing a problem for the industry as a whole. "The SME sector suffering from high interest rate which is as high as 20 percent. It is the high interest rates that is the stumbling block and also for sectors like real estate and infrastructure. Those are not even getting funds for the business," said Jindal.
The funding to the sector has still been restricted because of the high interest rates charged by the sector regardless of interest rates falling on the back of easing monetary policy followed by the Reserve Bank of India.
Assocham believes that some sectors like steel and metal have witnessed signs of improvement but the overall global scenario is yet weak and India too is included in this picture.
The industry body feels that lowering the interest rates would resolve the problem and enable some of the sectors to register a revival and thus spurt the economic growth.