The industrial slowdown is a matter of serious concern as we need more action from the government and Reserve Bank of India, Confederation of Indian Industry (CII), Western Region, said today.
Commenting on the October IIP (index for industrial production) figures, CII Director General Chandrajit Banerjee said this is a clear indication that industry needs the highest attention.
The top industry body had already projected that the second half of the year would start reflecting a combination of factors, including the developed world recession, the lagged effects of the previous rate rises in India and the emergence of a credit crunch in the country.
It is imperative to ensure that these factors do not continue to play out over the coming months and need to be dealt with using more counter cyclical measures to boost the industry, Banerjee said.
Hoping that the fiscal package announced on December 7 would provide part of the much-needed impetus to industrial growth, CII said it needs to be seen as only the beginning as sector specific government interventions are required to ensure that the slowdown is not precipitated any further.
The matter assumes additional seriousness since a -1.2 per cent growth in manufacturing poses a real threat to the employment prospects of the economy, CII said in a release here.
This also calls into question the overall growth estimates for 2008-09 since the April to October IIP growth figure stands at a mere 4.1 per cent as against 9.9 per cent in the same period last year, said the release.
