statesman news service
NEW DELHI, 12 MAY: Dismayed by the measly industrial output growth of two per cent this May, corporate India today blamed the development on various projects that have got stuck for want of clearance.
Commenting on the Index of Industrial Production (IIP) data for April 2013 which was released today, Mrs Naina Lal Kidwai, president of Ficci, said: “Overall the investment sentiment remain subdued in manufacturing and infrastructure and unless we see speedy implementation of projects stuck due to inter-ministerial clearances, industrial growth is likely to remain moderate.”
Mr Chandrajit Banerjee, director general of CII, said: “While industrial production has shown some signs of improvement, the growth triggers which would pave the way for a sustained recovery have yet to become apparent. The negative growth of mining sector continues to cause concern even as most lead indicators such as capital goods, intermediate goods, power production are performing below potential. What is also worrisome is that the consumer durables sector continues to be in the red as high interest rate is pulling down demand.”
According to Mr Banerjee, there is an urgent need to kickstart the investment cycle by speeding up clearances by the Cabinet Committee on Investment and addressing supply side bottlenecks in infrastructure. What is also required is infusing competition in the mining sector, improving coal supply position to the power sector, accelerating disinvestment and putting in place a conducive policy for attracting FDI inflows, he said.
The CII looks forward to an accommodative monetary policy announcement on 17 June to stimulate investment, he added.