India Inc demands stimulus to sustain double-digit growth
India Inc today said the government should continue with the fiscal stimulus measures to ensure that the double-digit industrial growth rate is sustained in the coming months.
New Delhi: India Inc today said the
government should continue with the fiscal stimulus measures
to ensure that the double-digit industrial growth rate is
sustained in the coming months.
"The IIP figures clearly establish that the economy has
recovered and can be hoped to achieve a high growth trajectory
provided the present policy parameters are not changed," FICCI
president Harsh Pati Singhania said in a statement here today.
The chamber said the figures show an all-round
improvement in all the sectors with manufacturing, mining and
electricity showing a better performance.
"...growth in manufacturing, particularly in the consumer
durables sector, can be attributed to the low interest rate
regime that was introduced October last year. Any reversal
of that stance will hit the growth momentum and bring down
industrial performance," Singhania said.
Echoing similar view, CII said any hike in the policy
rates could impact the economic recovery at this stage. "Any
hike in the policy rates at this point could affect the
recovery process, especially in those sectors where
consumption and investment are sensitive to interest rate
changes," it said.
The industry grew by a robust 10.3 per cent in October
against a paltry 0.1 per cent in the year-ago month, powered
by manufacturing, particularly the consumer durables sector.