Several industries in negative territory, needs urgent steps: ASSOCHAM

By admin December 17, 2012 12:50 pm IST

Indian industry has been thrown in a vicious circle where investment is declining fast and it is coupled with a contraction in consumer demand, necessitating some big initiatives not only from the government but also from the Reserve Bank of India, ASSOCHAM has said.
A quick analysis of the Index of Industrial Production (IIP) for September shows that close of a dozen sectors have seen massive drop in output as they found a big drop in consumer demand. The overall trend is visible in worsening conditions in the capital goods sector, which saw a decline of 12.2 per cent in September this fiscal.
Even in September, 2011, the capital goods segment — which is a kind of index of the investment appetite in the industry — had witnessed a decline of 6.5 per cent.
“Instead of improvement, the capital goods sector has seen deterioration throwing a major challenge for the Indian economy,” said ASSOCHAM President Rajkumar N. Dhoot.

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