New Delhi: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has backed the UPA government over the reform measures announced by it recently, saying they were "vitally needed at this point of time".
A statement released by the ASSOCHAM after the withdrawal of support by Mamata Banerjee's Trinamool Congress to the UPA has said that it fully supports the Union government on the move.
Though the body admitted that a hike in diesel prices and cap on subsidised LPG cylinders could result in price hike, it maintained that the government could not borne the subsidy for always.
A statement released by the ASSOCHAM has said that the body fully supports the Union government on the move.
DS Rawat, secretary general of ASSOCHAM, said, "Subsidized price of an essential fuel could not be borne by the government for all times to come."
"The fiscal situation has deteriorated and the rising fuel subsidy burden is one of the major causes for that," said Rawat, adding, "Unless some corrective measures were taken the long-term impact of such policies could be massive, it is good that the government has taken a decision to stand firm on the reform measures."