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With the manufacturing sector decelerated sharply to 0.1 per cent in July, industry body Ficci today asked for cut in interest rates and more reforms at state level to revive investments.
Ficci Secretary General Sanjaya Baru said that the slowdown in manufacturing sector reflects depressing investment outlook.
"As the slowdown is more pervasive this time in terms of number of sectors, it calls for urgent need to revive investments through reforms especially at the state level and also by bringing down interest rates," he said in a statement.
He said that as the consumption demand would increase in the festive season and "investment too due to government measures taken in the last few months, we can expect growth to pick up in coming months".
The Index of Industrial Production (IIP) during July slipped on account of manufacturing performance.
Growth of the manufacturing sector, which makes up 77.6 per cent of the index, decelerated sharply to 0.1 per cent in July compared to 5.3 per cent in the same period of 2016.