Kolkata, Jan 17: India now faces a less-than-six-per-cent economic growth as there has been a significant decline in industrial growth, with the index of industrial production (IIP) registering only a 5.7 per cent growth during April-October 2000 against 7.2 per cent achieved last year, Fitch Ratings India stated in its monthly economic update. The report states that the gross domestic product (GDP) also registered a growth of 5.8 per cent and 6 per cent in the first two quarters of this fiscal respectively. This can be attributed to increased international competition, inadequate growth of domestic demand, infrastructure-related constraints and other supply side bottlenecks and volatile oil prices.
Fitch Ratings is concerned at the rising inflation scenario that crossed the eight per cent mark in December. Poor industrial performance, erratic monsoon and an increase in money supply are further expected to influence the inflation rate.
The rating organisation feels the measures taken under the Financial Companies Regulation Bill, introduced recently, are steps in the right direction in sofaras protecting investor interest is concerned. A large number of investors have already lost their hard-earned money by investing in non-banking financial companies that have either failed to honour their commitments or have shut down altogether.
As many as 57 foreign direct investment (FDI) proposals worth Rs 3,115 crore have been cleared including those of Digital Future Investments RB Netherlands, Zuari Cement and Bharti Acquanet.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
