<p>The Bangalore Chamber of Industry and Commerce (BCIC) on Tuesday reacted strongly to the policy response of the Reserve Bank of India that was announced earlier in the day. <br /><br /></p>.<p>While appreciating that RBI has limited room to manoeuvre given persistently high inflation, BCIC pointed out that GDP will be significantly lower if industrial and service sectors continued to languish at current levels.<br /><br />“We are concerned about the impact of the policy on industry and services and in particular on investments. With the government crowding out the private sector in borrowings to fund its social programs and its inability to manage its fiscal deficit, growth is a serious causality. The necessary liberalisation and reforms are not being implemented and the atmosphere for doing business is getting vitiated,” BCIC President H V Harish said.</p>
<p>The Bangalore Chamber of Industry and Commerce (BCIC) on Tuesday reacted strongly to the policy response of the Reserve Bank of India that was announced earlier in the day. <br /><br /></p>.<p>While appreciating that RBI has limited room to manoeuvre given persistently high inflation, BCIC pointed out that GDP will be significantly lower if industrial and service sectors continued to languish at current levels.<br /><br />“We are concerned about the impact of the policy on industry and services and in particular on investments. With the government crowding out the private sector in borrowings to fund its social programs and its inability to manage its fiscal deficit, growth is a serious causality. The necessary liberalisation and reforms are not being implemented and the atmosphere for doing business is getting vitiated,” BCIC President H V Harish said.</p>
