New Delhi, July 28 (PTI) Effective policy measures are needed to support demand and to have a multiplier effect on production possibilities, expansion of employment in factories, and pushing capital investments, industry chamber PHDCCI said on Wednesday.

PHDCCI President Sanjay Aggarwal suggested that there is a need to lower interest rates for consumers and businesses, lesser compliances for MSMEs (Micro, Small & Medium Enterprises) at the ground level, and a lower tax regime to increase the personal disposable income of the people.

To re-build for the high growth trajectory, the government should frontload the National Infrastructure Pipeline expenditure as private investment is not coming in a shorter period, he added.

The increased spending on infrastructure will give a multiplier effect to rejuvenate the aggregate demand in the economy, Aggarwal said.

He also said that more and more direct benefit transfers need to be considered for the urban and rural poor under the various welfare schemes.

Further, he said that the recovery trend in key economic indicators is indicating a strengthened growth trajectory of the Indian economy in the coming months.

"Going ahead, effective policy measures are needed to support demand and to have a multiplier effect on production possibilities, expansion of employment in factories, expansion of capital investments, and an overall virtuous circle of the growth trajectory," Aggarwal added.

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