Recovery in IIP encouraging: PHD Chamber

The recovery in IIP growth in the month of September 2013 is inspiring as it has geared to 2% from 0.4% in August 2013. However, the IIP has been witnessing sharp fluctuations since April 2013 as growth in IIP was recorded at 1.5% which decelerated to -2.5%. In the month of June 2013, the growth in IIP was recorded at -1.8% which increased to 2.8% in July 2013.

With positive developments at agriculture front such as good kharif crops production and inspiring rabi crops sowing, domestic demand conditions are expected to improve in the ensuing months and industry sector is expected to continue in the positive growth trajectory, going forward, said Mr. Suman Jyoti Khaitan, President, PHD Chamber of Commerce & Industry.

However, negative growth in capital goods at (-) 6.8% in September 2013 indicates that investment cycle is still in the fragile territory which needs to revive with reduced costs of funds in terms of rate cut and reduced costs of doing businesses in terms of improving regulatory environment, said Mr. Khaitan.

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