Mumbai: Concerned over falling growth, RBI today asked the government to provide investment stimulus and take aggressive steps, like increasing petroleum prices, to curtail subsidies.

“Corporate sales decelerated along with continued decline in profits and could adversely impact investments ahead.

“In this situation, crowding-in of private investment demand by public investment spending stimulus while aggressively cutting expenditure on subsidies hold the key to growth revival,” the RBI said in Macroeconomic and Monetary Developments report.