Industrial growth, particularly the manufacturing sector, continues to remain under pressure with limited signs of improvement in a few sectors. We need to broad base the growth impulses and this calls for support by way of an accommodative monetary policy. FICCI’S latest Business Confidence Survey indicates some improvement in capacity utilisation rates and for this to translate into higher investments there is a need to strengthen demand further. Investments in the industrial economy will be the key driver for sustaining a higher growth path & creating jobs and the current situation calls for all measures to be deployed towards this end. 

IIP DATA

Commenting on the release of IIP numbers, FICCI said that the manufacturing sector performance is on the expected lines as predicted by FICCI survey too last month. The growth in manufacturing may take some more time to pick up as the measures taken by the Government in the last few months start yielding results. There is an unfinished agenda of the reforms which the present Government is trying to address.

The manufacturing sector growth is dependent on many other factors too like the overall demand scenario in the economy which needs to be further encouraged.