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High-level committee under PM should look into issues of industrial slowdown: FICCI

13 Feb 2013 Evaluate

Concerned over the decline in industrial production, the Federation of Indian Chambers of Commerce and Industry (FICCI) said a high level committee under the Prime Minister should look into the issue of industrial slowdown and monitor its progress for the next few months. Muted activities in manufacturing and mining sectors led the industrial output contract by 0.6% in December, the second consecutive month of decline.

As per the FICCI president, Naina Lal Kidwai, recently released IIP data has diminished the hopes of recovery in manufacturing in the near future. It is seriously a cause of concern as both consumer goods and investments have witnessed negative growth.

Indicating a need for improving and strengthening implementation in order to ensure project completion, Naina said despite the new project announcements have tapered off, the existing projects are suffering with cost and time overruns. 'The new Cabinet Committee on Investments also needs to consider and clear the pending projects within the shortest possible time' Naina added. She also asked the Reserve Bank to further reduce interest rates.

Sharing the similar views, the Confederation of Indian Industry (CII) said ‘sentiments are already reflected in the IIP figures and it does not want to see any announcements which would hurt industry's confidence’. Further, it has also asked the government not to raise any tax or duties in the forthcoming Union Budget and hope that the budget would take bold decisions to rejuvenate demand and boost investor confidence. Moreover, ASSOCHAM president, Rajkumar N Dhoot, said the continued fall in intermediate and capital goods production indicates that the revival is in a distant dream.

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