New Delhi, May 27: Narendra Modi and his team are all set for the second term to form government at the centre, but the biggest challenge that they will have to tackle is to revive the economy of the country, opines a top industrial body on Monday. The scathing minutes of the upcoming challenges were shared just three days before Modi takes oath for Prime Minister in the second consecutive term.

According to a report, published in Reuters, the Federation of Indian Chambers of Commerce & Industry (FICCI) opines that during the last three months to December, the economy of India grew at a slumping rate of only 6.6 per cent. FICCI observed that the worry that PM Modi government should be ready to revive the domestic consumption in co-relative pace with global economic development, which is currently at a weakening stage. IMF's Gita Gopinath Says India Must ‘Transparently Communicate’ Its Growth Numbers.

Suggesting measures for revival of the economy, FICCI stated that the new Union government should keep declining domestic consumption aspect in mind while drafting the first Union budget after swearing-in.

Cautioning the upcoming government, by suggesting economic revival measures, FICCI said, as the global news agency quotes, "The recent signs of a slowdown in the economy stem not only from slow growth in investments and subdued exports but also from weakening growth in consumption demand." Adding more, its industrial body said, "This is a matter of serious concern and if not addressed urgently, the repercussions would be long term." Indian Economy in 2018: The Year of Rise And Fall of Markets & Fuel Prices & The RBI Game of Throne.

As per the FICCI, the main challenges before the upcoming government include the agricultural sector’s economic woes, a shortage of jobs and the stuttering economy. Along with this, slow industrial output and manufacturing growth, slumping car and two-wheeler sales, and a drop in airline passenger traffic are other key sectors which Modi 2.0 will have to look after.

Not only, FICCI, another industry body - Confederation of Indian Industry (CII) - too maintained that current scenario for the country is unstable and PM Modi Government needs to buckle up before it goes out of hands. New Regulations for RBI? Narendra Modi Government Set to Change Functioning of RBI, Say Reports

Both the industrial bodies opine that the new government should cut corporate and individual taxes, invent schemes to boost consumption demand and consider tax concessions for export-oriented manufacturers. Along with this, an interest rate cut from the Reserve Bank of India (RBI) would be extremely helpful. World’s Fastest Growing Economy? Millionaires Fleeing India in Larger Numbers, Claims Report

With all these challenges ahead of the revived and energised Modi 2.0, it would also be important for the new government to induct an economic master who understands the important economic reforms and has innovative ways to refuse new initiatives for reviving India's economic growth.

(The above story first appeared on LatestLY on May 27, 2019 07:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).