Chennai: Industry body Assocham on Wednesday backed the Centre's decision to hike diesel price and allow FDI in multi-brand retail.
It said the initiatives were much needed and the Centre could not all the time subsidise prices of fuel.
"The reform measures announced are vitally needed at this point of time and Assocham fully supports the Union government in its efforts to turn around the economy," the industry body said in a statement.
Admitting that revision of diesel prices or restriction of LPG cylinders per household to six would result in price rise and higher costs for households, Assocham Secretary General D S Rawat said: "Subsidized price of an essential fuel cannot be borne by the government for all times to come."
"Unless some corrective measures are taken, the long-term impact of such policies will be massive. It is good that the government has taken a decision to stand firm on reform measures," he added.
The government last week hiked diesel price by Rs five per litre and capped the number of subsidised cooking gas cylinders to six per household a year, decisions that would bring in an additional Rs 20,300 crore to oil companies.


Latest News from Business News Desk