India Inc demands stimulus to sustain double-digit growth
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Last Updated: Friday, December 11, 2009, 21:30
  
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.

-PTI


First Published: Friday, December 11, 2009, 21:30


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