Corporates reject concerns over slowing economy

The dip in industrial production has been described as not a cause for worry as this figure is based against the high growth of 14.8 per cent in March last year.

"Though the growth in consumption of consumer goods has been low throughout the year, the growth in investments made by companies to expand their business continues," said Y M Deosthalee, chief financial officer, Larsen & Toubro. "Consumption would follow the investments being made by the companies. It would not be right to draw conclusions on one month's data."

Textiles manufacturers, who are already under pressure because of rising oil prices and a slowdown in the US and global economy, have expressed concern over the industrial production figures, but expect demand to pick up later.

"In the next 8-10 months we see the textile sector coming up, as fundamentally our economy is strong and we have had a good cotton crop," said R K Dalmia, president, Century Textiles Ltd.

The electronics sector