Revival of demand crucial to strengthen industry growth: PHD Chamber

Revival of demand crucial to strengthen industry growth: PHD Chamber

Revival of demand crucial to strengthen industry growth: PHD Chamber

 

No.PR-24
May 12, 2015
New Delhi

 

Revival of demand crucial to strengthen industry growth: PHD Chamber
 

IIP growth at 2.1% for the month of March 2015 is not consistent with the various reforms undertaken by the new government at the Centre since growth of industries would be critical for the fruitful outcomes of Make in India initiative, said Mr. Alok B. Shriram, President, PHD Chamber in a press statement issued here today.
 

The overall IIP declined significantly from 4.9% in February 2015 to 2.1% in March 2015 with manufacturing registering a decline from 5.2% in February 2015 to 2.2% in March 2015, mining registering a decline from 1.9% in February 2015 to 0.9% in March 2015, basic goods registering a decline from 5% in February 2015 to 2.3% in March 2015, electricity registering a decline from 5.9% to 2% in March 2015, capital goods registering a decline from 8.5% in February 2015 to 7.6% in March 2015 and consumer goods registering a significant decline from 5.1% in February 2015 to (-)0.7% in March 2015.
 

First and foremost must be the revival of demand scenario especially the rural demand in the country which is impacted by multiple factors of which sub-sided growth of income levels, slower growth of employment, increasing costs of credit are few of them, said Mr. Shriram.
 

So, at this juncture, economy needs to be refueled with overhauling of structural constraints from the grassroot level, he said.
 

However, decline in CPI inflation from 5.3% in March 2015 to 4.9% in April 2015 is inspiring as it will create more room for softening monetary policy stance and help demand to reinvigorate, said Mr. Alok Shriram.
 

ENDS.

Koteshwar Prasad Dobhal
Consultant (PR)