At a seminar organised by the Associated Chamber of Commerce and Industry (Assocham) here on Saturday, Singh said political parties and industry must focus on reforms in the core sector to attract large-scale investments.

Singh said the economy was still growing at 5.5-6 per cent and although this was not at optimal rate, the economy was not in a "mess" as being projected. He suggested that industry should have dialogues with labour unions to generate favourable response to reforms and restructuring of public enterprises and urged Assocham to take a lead in educating workers and the public on the need for reforms.

According to Assocham president L Lakshman, the need of the hour was a second wave of reforms for reviving demand and business confidence, increasing infrastructure investment, bringing down interest rates and further discipline to put the economy on high growth path.

He said chances of an early economic growth seemed bleak in the present scenario. In fact, if these issues were not addressed immediately, the economy would slide into deep recession, he said.

Revival of demand, investment and industrial activity on a priority basis could alone help the economy reach a sustainable high-growth path which in turn would lead to making the country internationally competitive, he added.

According to Business Standard editor TN Ninan, the slowdown was a result of excess credit demand and capacity built up in the early reform years which was not sustainable.