New Delhi: Expressing concern over industrial output, which contracted by 3.2 per cent in November, India Inc on Tuesday urged the government to implement structural reforms to revitalise investments and stimulate demand.
“The steep fall in the manufacturing sector growth is because both the export and domestic demand, especially rural demand, have slowed down. It also underlines the need for more measures to stimulate investments and deeper structural reforms,” Ficci President Harshavardhan Neotia said.
Dashing hopes of a recovery, industrial production contracted by 3.2 per cent in November – the lowest level in over four years – due to poor performance of manufacturing sector and a sharp decline in capital goods output.
This is the worst performance since October 2011, when IIP had contracted by 4.7 per cent.
“Demand side scenarios for capital and intermediate and basic goods are not encouraging and need attention to identify the factors and remedial measures for revival.
“The negative growth further worsens the prevailing levels of demand-supply imbalances in the country. The significant shrinkage in the production of capital goods and consumer non-durables shows that industrial revival is going to be one of the major challenges in days to come,” Assocham Secretary General D S Rawat said.
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