Industry body ASSOCHAM said the revised estimate of 6.9% GDP growth for this fiscal year is disappointing and much lower than expected. Mr Dilip Modi president of Associated Chambers of Commerce and Industry of India said that “India Inc needs investment drivers in various sectors of the economy coupled with good governance at all levels.”

The drop in agriculture and manufacturing sectors has been particularly disappointing in 2011-12 compared to previous year, he said that “We want investment-led growth, not consumption led growth as we are witnessing now.”

Mr Modi said states with good governance have managed to attract investments while others have not. The government should also relax monetary policy to bring down interest rates so that fresh investments pour in.

The ASSOCHAM president said weak global economic conditions too are impacting the Indian economy. He added that the chamber had forecast 7 to 7.5% GDP growth for current fiscal year.