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ASSOCHAM strongly recommends for a paradigm shift in the policy approach

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Capital Market
Last Updated : Feb 18 2014 | 12:01 AM IST

ASSOCHAM's Views on IIP

ASSOCHAM expresses serious concern on the deceleration of industrial activity in December 2013. Estimates of industrial production for the month of December 2013 show further deceleration of industrial production in India. Manufacturing output further decelerated. Particularly, the significant fall in the production of consumer durables indicates that high level of interest rates has been affecting growth through demand contraction, said The Associated Chambers of Commerce and Industry of India.

In view of this, ASSOCHAM strongly recommends for a paradigm shift in the policy approach. The RBI must consider that supply augmentation too can lead to inflation control. Other than this, cheap imports of various manufactured goods like electronics, chemicals and steel are resulting in domestic manufacturers lowering their capacity utilization rates, leave alone adding new capacities. Various Government Ministries must act in a coordinated fashion for reviving industrial production, said Mr D.S. Rawat, Secretary General, ASSOCHAM.

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First Published: Feb 17 2014 | 1:53 PM IST

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