FICCI comments on WPI data

"As per the WPI data released today, manufacturing segment prices continue to remain depressed which reflects the persisting weak demand conditions. Demand needs to gather steam for investments to see a sustained improvement.

Though the IIP numbers reported last week indicated a strong pickup in growth, it needs to be seen in a broader light. The corporate sector performance is yet to turnaround. The interest rates have to come down to more comfortable levels for investors to benefit and for consumers to consider spending. It remains imperative to pull all levers to thrust domestic demand", said Dr A. Didar Singh, Secretary General, FICCI.

"Further, the food segment, particularly prices of vegetables and pulses, continue to indicate an increase. While the Government has been keeping a tab on the food situation, we hope to see further momentum on agriculture sector reforms. It also remains imperative that the supply side bottlenecks are removed and leakages are plugged", Dr Singh added.