Assuring to get manufacturing and economy out of the downturn, Finance Minister P Chidambaram said that key infrastructure projects facing delays have been identified and will be cleared in the next few weeks. Chidambaram said that manufacturing is not picking up as demand is sluggish owing to the prevailing economic slowdown.
On manufacturing sector growth, Finance Minister said that demand for consumer durable sector is sluggish, while consumer non-durables sector is growing over 12 percent. He said that manufacturing capacity is there but sentiments must change for buying durable goods. Referring to the manufacturing core sectors, he said that core sector output must be increased by producing more coal, iron ore, steel and aluminium to boost the economic growth. Meanwhile, growth in the eight core industries' slowed down to 2.3% in May as against 7.2% in the same month of previous year, reflecting slowdown in the economy.
The infrastructure development is crucial to boost the economy’s growth. Thereby, the government has set up the Cabinet Committee on Investments (CCI) to clear the bottlenecks holding back mega infrastructure projects. It has set the $1 trillion investment target for the infrastructure sector for the 12th Five Year Plan (2012-17).
Regarding the economy’s growth, Chidambaram said that Indian economy is taking time to return to high growth trajectory due to the global uncertainties, however, the government is working to stabilise the economy which may take time.
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