Concerned over the decline in industrial production in April, India Inc pressed for rate cut by Reserve Bank of India (RBI) to boost output and revive economic growth, besides speedy clearance of projects. Country’s industrial production grew less than expected, at 2 percent in April on YoY basis. India’s economic growth fell to a decade low of 5 per cent in 2012-13 from 6.2 per cent recorded in 2011-12.
FICCI President Naina Lal Kidwai said that the investment sentiments remain subdued in manufacturing and infrastructure and the RBI should intervene and cut interest rates to stimulate demand. ‘Unless we see speedy implementation of projects which are stuck due to inter-ministerial clearances, industrial growth is likely to remain moderate’ she added. Moreover, Industry body Assocham also demanded for special steps to boost economic growth citing that the stubborn nature of the slowdown can be helped only by some bold measures by government in terms of providing and enabling environment for investment.
Further, the Confederation of Indian Industry (CII) said that although the Index of Industrial Production (IIP) has shown some signs of improvement, the growth triggers which would pave the way for a sustained recovery have yet to become apparent. Thereby, CII is looking forward to an accommodative monetary policy announcement on June 17 to stimulate investments. Referring to the infrastructure development, industry body said there was an urgent need to kick start the investment cycle through speeding up clearances by the Cabinet Committee on Investment (CCI) and addressing supply-side bottlenecks in infrastructure.
Manufacturing sector, which constitutes over 75 per cent of the index, grew by marginal 2.8 per cent in April against a decline in the output by 1.8 per cent in the same month of previous year. Within the manufacturing sector, consumer durables segment registered one of its highest falls since 2009.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: