Apex industry associations on Friday expressed disappointment over weak Index of Industrial Production (IIP) performance for March and made a case for fast tracking reforms to spur growth.
“A coordinated action from the Government and the RBI is called for at this juncture,” they said.
FICCI President, Mr R V Kanoria said that the March IIP figures show high degree of volatility in industrial performance. “Growth does not seem to have bottomed out, and unless, the Government acts immediately, FICCI does not expect an improvement in manufacturing until the second half of this fiscal when the base effect would be favourable and the Central Bank’s rate cut will translate into a positive impact.”
Mr. Chandrajit Banerjee, Director General, CII , said that while economy is showing early signs of de-growth, on the back of high cost and poor availability of capital, high input costs and poor sentiments, which have not been helped by the recent change in outlook by S&P, India is in a position, where domestic actions can help effect a turnaround.
Industry body ASSOCHAM made a case for easing monetary policy despite inflation risks.