Pointing out that the demand for manufacturing industry goods are not picking up, the Industry chamber ASSOCHAM today said government will have to give more push to the rural sector and create demand. A top official of the chamber also noted that thesectors which will give a strong base for manufacturing, whichare in difficult situation, should improve and generate jobsin order to increase demand.
"The kind of feedback that I get is that the demand for manufacturing industry goods is not picking up," ASSOCHAM National Secretary General D S Rawat said.
He said "it will not pick up unless the sectors whichare in difficult situation like real estate, power, mining and some of other sector which will give a strong base for manufacturing sector (improve)"
"By generating jobs, and money going in the hands of the people- (it) will increase the demand, and then only demand for manufactured goods will increase," he added.
Rawat was speaking to reporters after releasing ASSOCHAM's Economic Research Bureau report 'Manufacturing Excellence and Emergence in India: The state level analysis', along with the chamber's Karnataka Region Development Council Chairman R Shivakumar here.
Pointing out that in many of the sectors jobs are in difficult situation, he said it was particularly so in the highest job providers'- real estate and agriculture sector. Noting that the government has already given push to infrastructure sector, Rawat said only the public investment is coming.
"The government will have to be giving more push to the rural sector and create demand," he added. According to the ASSOCHAM report, Karnataka has emerged numero uno amongst the mainstream states across India in termsof manufacturing excellence; it has ranked third in terms of attracting investments in manufacturing sector thereby leaving front line states like Gujarat behind. "Karnataka has the best manufacturing process ratio of 2.63 with maximum value of goods being converted into finishedgoods valuing over Rs 2,000 crore," ASSOCHAM quoting from the report said in a release.
In terms of manufacturing sector, while states across India attracted investments worth Rs 34 lakh crore as of FY16, Karnataka accounted for over 10 per cent share with investments worth Rs 3.4 lakh crore with only Maharashtra (12.8 per cent) and Odisha (12.7 per cent) being ahead of it, it added.
Highlighting that the manufacturing sector also accounted for about 32 per cent share in total investments attracted by Karnataka, the study said within manufacturing, the state attracted maximum investments in metal and metal products which accounted for over 68 per cent share.
Karnataka is also ranked third across top states in India in terms of low ratio of interest cost (0.11 for total interest paid in current year for loans outstanding in previous year, only Odisha (0.08) and Chhattisgarh (0.11) are ahead of the state in this regard.
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