Poor IIP shows: India Inc disappointed
Recently, RBI in its half yearly review of the monetary policy had sharply lowered this fiscal's economic growth projection to 5.8 per cent, from 6.5 per cent estimated earlier. This was done in the view of global and domestic factors like poor investments and subdued demand.
Further, Assocham said, the continued negative growth of the manufacturing sector has got wider implications and needs to be addressed on a priority basis.
The IIP data suggests that output of manufacturing sector, which constitutes over 75 per cent of the index, contracted by 1.5 per cent in September, as against a growth of 3.1 per cent in the same month last year.
Calling for faster implementation of pending reforms like GST, Ficci said at this juncture, it is important that the government does not lose momentum on reforms front.
Besides, Assocham said it has been urging the policy makers to announce special incentives for investors in manufacturing capacities and improving credit availability, among other things.
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