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Sharma to meet India Inc on declining IIP

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Press Trust of India Mumbai
Last Updated : Jan 21 2013 | 12:53 AM IST

Expressing concern over declining industrial production, Commerce and Industry Minister Anand Sharma today called for an urgent meeting of industry leaders next week in New Delhi.

The Index of Industrial Production (IIP) has slipped to a two-year low of 1.9% in September.

"It is a matter of concern. I have called for a review meeting in Delhi to look at all aspects like how the industry can get opportunities and climate to invest more," Sharma said here at the World Economic Forum summit.

Sharma also asked the RBI to urgently review its monetary policy to tackle the issue.

India Inc, which has been demanding lowering of interest rates by RBI, has also asked the central bank to reverse the trend of raising interest rates now.

The Reserve Bank has hiked interest rates 13 times since March, 2010, to tame inflation. Headline inflation has been above the 9%-mark since December last year and stood at a 13-month high of 9.78% in August before moderating slightly to 9.72% in September.

The continuous hike in the key policy rates are counter-productive for industrial growth and capital formation, the minister said.

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First Published: Nov 13 2011 | 5:58 PM IST

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