Mumbai: Industry seems to be disappointed with the latest reports. IIP in negative zone may drag down the Indian economy
All the hopes of a turnaround in the economy seem to have been shattered. After some hopes of miracles, the industry is now realizing that the pain is not going to end so fast and the economic revival will take time, if not years.
Reports of the manufacturing sector performing badly seem to have shocked the industry. In February the low consumption continued to drag the manufacturing.
The latest report has been released by Central Statistics Office on 11th April.
In the meantime Central Statistics Office has said that Index of Industrial Production (IIP) for February 2014 was around 1.9 per cent lower than the same period last year. In the same month this year manufacturing went down as much as 3.7 per cent compared to February 2014.
This may drag down the growth rate of the country for the year and the hopes of economy that it may see some upward movement may be dashed. Reports suggest that 13 out of twenty-two industry groups coming under manufacturing sector experienced negative growth.
CII director general Chandrajit Banerjee seems to be expressing the feeling of the industry when he said, "The return of industrial production to the negative territory is extremely disappointing and is much below the expected industrial potential…It is also disconcerting to note the negative growth of the manufacturing sector for the fifth consecutive month, indicating a downturn in the business cycle as weak consumption and investment demand are continuing to stymie growth impulses. What is of additional concern is that the negative IIP growth has happened despite the favourable base of last year. The only positive is the robust output of the electricity sector". There is little hope of economic turnaround at least in the short term.
via Business - Google News http://ift.tt/1qtnutM
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