Index of Industrial Production for February 2015 encouraging: Industry ... - Merinews

Index of Industrial Production for February 2015 encouraging: Industry Associations

With industrial activity showing signs of revival as indicated by the 5.0 per cent growth seen in February 2015 over the corresponding month of 2014, apex industry body Assocham has termed the IIP numbers for February 2015 as 'encouraging.'

"The manufacturing sector seems to have registered a strong growth rate of 5.2 per cent as compared to the -3.9 percent seen in February 2014, besides the mining sector also seems to have maintained its growth rate, however, the slightly subdued performance of the electricity sector as compared to the previous year is something to look out for," said Rana Kapoor, president of The Associated Chambers of Commerce and Industry of India (Assocham) in a statement.

"In terms of the use-based classification the recovery seems to have stemmed from a rebound in growth seen in the capital goods production, though, the slow growth of the intermediate goods despite the growth in the capital goods production indicates that revival story is not fully complete," said Kapoor.

There has been a mixed growth seen in the consumer products segment with consumer durables showing degrowth of minus 3.4 per cent in February 2015 whereas the consumer non-durables grew by 10.7 per cent. "Concentrated and sustained efforts need to be targeted at reviving the electricity, intermediate and the consumer durables sector," said the Assocham chief.

Assocham said that Government needed to address the peculiar challenges faced by these segments which would then further boost the industrial growth of the economy.

Though there were no rate cuts that were announced in the recently announced First Bi-Monetary Policy Statement 2015-16, Assocham said that it was hopeful that in the coming months, the rates will move down a bit to provide further impetus to the growth sentiment and this shall surely help in further boosting the economic activity.Reacting to IIP number, FICCI's Secretary General A. Didar Singh said, "The IIP results for the month of February are encouraging and on the expected lines as outlook for the industry has improved in the last few months. It is important that this positive sentiment and growth continues for the creation of additional jobs for our increasing labour force."

He added, "We hope to see further growth in manufacturing as a result of recent announcements in the budget and certain other measures announced by the Government. However, it is important that to sustain this growth interest rates are brought down further for stimulating investments and demand and more steps are taken to improve our business regulatory environment," Singh added further.

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