ASSOCHAM Reaction: IIP for December 2015

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New Delhi, Feb. 12 (ANI): Apex industry body ASSOCHAM today expressed serious concerns on India’s industrial performance in December 2015 which stood at 1.3 per cent lower than index for December 2014.

“Estimates of industrial production for the month of December 2015 mirrored the subdued industrial activity in the country and calls for urgent policy remedies,” said Mr Sunil Kanoria, President, ASSOCHAM.

“Negative growth in manufacturing and indifferent growth in mining have got wider implications and needs to be addressed on priority basis,” said Mr Kanoria.

“The slow growth in electricity sector further affects industry prospects,” he added.

“Going by the use based classification, 16.5 percent growth in consumer durable goods output is a positive development,” further said Mr Kanoria.

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“However, absence of similar trend in basic and intermediate goods needs to be looked into,” said Mr Kanoria. “The negative growth of capital goods and consumer non-durable products further worsens the prevailing levels of demand-supply imbalances in the country.”

The significant shrinkage in the production of capital goods shows that industrial revival is going to be one of the major challenges, he asserted.

“Mixed growth of consumer products further indicates uncertain industrial performance,” said Mr Kanoria.

Even the recently released estimates of GDP at constant price indicated moderate development in the economy as compared to the previous quarter of the same year.

“Reasons for the sluggish industrial performance could be attributed to weak exports, slow investment, and weaker rural spending,” said Mr Kanoria.

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In view of the above developments ASSOCHAM strongly urges that both Government and the monetary authority need to focus on boosting the industrial growth.

ASSOCHAM feels that Union Budget for 2016-17 must aim primarily at growth.

“It is a unique opportunity for our leadership to boost the sentiments of the industry and investor thereby paving the way for higher industrial growth in India,” said the ASSOCHAM chief. (ANI)

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