IIP data shows Industrial production still in slowdown phase: Chandrajit Banerjee

Commenting on the index of industrial production for August 2014, Mr Chandrajit Banerjee, Director General, CII said the IIP data shows that industrial production continues to be in the slowdown phase and a visible turnaround in industrial growth is still not happening.

And if we factor in the base effect, the performance of industry shows that demand is yet to show distinct signs of a pick-up. Business sentiment has significantly improved as is borne out from the CII business confidence index, and we hope that this would translate on the ground soon.

What is worrisome is the poor performance of the manufacturing sector which continues to be under stress as new orders are not forthcoming in a big way. The negative growth of the capital and consumer goods sector, especially consumer durables, need interventions, stated Mr Banerjee.

There is need for taking cognizance of the slow growth of industrial production and take steps to revive investment and stimulate demand in the economy. This would entail expediting execution of approved projects and providing a competitive market for coal and mining sectors.

Recent announcements and policy actions like 'Make in India' initiative, ensuring flexible labour policy, etc should help the turnaround, said Mr Banerjee.