<p>Seventeen pioneers of Indian industrial sector, including chairman of Reliance Industries Limited (RIL) Mukesh Ambani and other industry dignitaries, will meet with government representatives to discuss steps to renew and restore the local economy in the light of growing concerns of crumbling world economy.</p>
<p>Mukesh Ambani and other industry leaders, including Narayana Murthy, Ratan Tata and Anand Mahindra will join Finance Minister Pranab Mukherjee in a meeting to discuss ways to rejuvenate the economy as the government tries to tackle a slow-growing economy amid escalating inflation, which has remained close to double digit mark (above 9 per cent)throughout the April-June quarter. Resultantly, the Reserve Bank of India (RBI) has taken a drastic step to increase interest rates on three occasions just this fiscal year, adding to the concerns of industrial sector.</p>
<p>The meeting will focus on narrowing down low functioning areas of the economy and discussing on how corporate enterprises, especially from the big leagues, can increase industrial output and promote economic growth. The government has shown concerns about deceleration in investments, particularly the inflow of foreign direct investment (FDI). Measures to attract more foreign and domestic investment are likely to take centre stage during the meeting.</p>
<p>Finance Minister Pranab Mukherjee had noted earlier last week that the steps taken by Reserve Bank of India to increase interest rates in order to curb escalating inflation may be able to benefit the purpose, but a long term change is needed to uplift the economy. Since industry plays a key role in strengthening economic structure, their insight into the problem and discussion on possible solutions may help alleviate the problem at large. Industrial output growth rate had hit a nine month low earlier this May due to poor show of manufacturing and mining sectors and lower off take of capital goods. Subsequently, rising interest rates is increasing the input cost as loans are getting costlier. Hence, insight and support from industry leaders is being sought as a must to tackle the issue.</p>