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Industrial revival is going to be one of the major challenges to new Government

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Capital Market
Last Updated : May 13 2014 | 11:59 PM IST

Index of Industrial Production (IIP) for March, 2014: ASSOCHAM Reaction

The significant shrinkage in the production of capital goods and consumer durables shows that industrial revival is going to be one of the major challenges to new Government, apex industry body ASSOCHAM said while expressing serious concerns on industrial deceleration in March 2014.

A number of factors have actually pulled down industrial performance through significant cost and time overruns, these include: delays in land acquisitions, environmental clearances, cost of finance, lack of infrastructure support, linkages and others, said Mr D.S. Rawat, secretary general of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

In view of this, ASSOCHAM strongly recommends for a paradigm shift in the Government approach. To start with, the new government must work towards building investor confidence with measures like reducing the investment allowance eligibility limit to Rs. one crore from the existing Rs. 100 crore, besides the policies and processes that govern industry need to be reviewed on priority basis.

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First Published: May 13 2014 | 3:24 PM IST

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