The Index of Industrial Production (IIP) figures for the month of June (7.8%) indicate some positive signals of recovery in the economy, though there are still serious concerns about the weak monsoon and continuously declining exports.

The significant upward trend in the growth of the manufacturing sector (7.3%) needs to be sustained and enhanced further as its contribution to the GDP has to increase significantly to ensure sustainable economic growth in a country of India’s size.

“It is indeed very heartening to note the significant jump in the performance of the capital goods sector, 11.8% in June after several months of negative growth, which shows that fresh investments have started picking up”, said Mr. Satish Bagrodia, President, PHD Chamber.

“Against this backdrop it has become imperative to rejuvenate the industrial sector further by providing an impetus to growth. The Chamber would advocate more public investment in infrastructure and skill development. Ensuring adequate credit availability to industry at reasonable rates is a priority to boost demand and reduce production costs in industry. Enhancing the efficiency of public investment is also of utmost importance to spur demand in industry”, added Mr. Bagrodia.