Volatility in IIP worrying: PHD Chamber

After registering a growth rate of 9.9% in October 2015, the severe downfall in IIP numbers to -3.2% in November 2015 is a major worrying factor as the industry was expected to grow in a good growth trajectory, said Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry.

Slowdown in domestic demand is a major factor and government must take demand boosting measures to help industry growth to revive in the coming times, said Dr. Gupta.

The IIP declined to (-)3.2% in November 2015 from 9.9% in October 2015. Capital goods declined significantly from 16.3% in October 2015 to (-)24.4% in November 2015 while the manufacturing growth declined to (-)4.4% in November 2015 from 10.6% in October 2015. Growth in consumer durables also declined substantially from 42% in October 2015 to 12.5% in November 2015.

 

Going ahead, efforts should be taken to enhance the disposable income of the households vis-a-vis simplification of taxation system and enhanced tax incentives to individuals and reduction in the interest rate scenario, said Dr. Mahesh Gupta.

These measures would go a long way to boost consumer demand and growth of manufacturing sector in the economy, said Dr. Gupta.

Powered by Capital Market - Live News