The continued subdued growth of the manufacturing sector has got wider implications and needs to be addressed on priority basis, besides the lower rate of growth of mining sector in the recent past is further compounding the manufacturing issue and though the electricity sector has been posting some growth but has to go a long way in order to bridge the shortfall of power supply to its demand, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
As for the use based industries, the continued fall in capital goods production indicate that industrial revival would not be seen in near term, said Mr D.S. Rawat, secretary general of ASSOCHAM. As investment in capital goods is a discrete process, in order to get credibility there needs to be a sustained growth in this sector.
Further, the negative growth of consumer durables and moderate growth in intermediate goods reinforces the poor state, said Mr Rawat.
Indian economy has been witnessing a weak supply response owing to the uneven level playing field. The present tax regime has put domestic manufacturing at a disadvantage vis-vis imports. ASSOCHAM has been urging the policy makers for corrective measures.
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