IIP numbers: Broad-based industrial growth still elusive, says CII

The Confederation of Indian Industry (CII) has said a “robust and broad based growth” is elusive for the industrial sector, given the latest reading of the Index of Industrial Production (IIP) for March 2013. The mining sector’s performance continues to be a concern, the industry body said.[caption id=“attachment_770837” align=“alignleft” width=“380”] March numbers. Reuters[/caption]

In a statement after the IIP figures were released, CII Director General Chandrajit Banerjee, said, “A 2.5 percent growth over a negative base of -2.8 percent in March last year indicates that a robust and broad based growth is elusive for the sector. What is creating concern is the growth of the mining sector which continues to be in the negative terrain. Similarly, the negative growth of consumer durables indicates subdued demand conditions reinforcing our view that the sector continues to be stymied by the high interest rates prevailing in the economy.”

CII said investment revival measures assume utmost priority. Expressing doubts whether the capital goods production growth can be sustained despite the smart showing by the sector in March, Banerjee said, “The intermediates continue to be in the red. There is an urgent need to fast track project clearances by the cabinet committee on investment, address supply bottlenecks and carry out reforms to promote competition in the mining sector.”

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Reiterating its continued emphasis on an easy monetary policy regime, CII said it also “looks forward to an accommodative monetary policy regime to spur investment.”

“CII hopes that the RBI would take note of this and even before the next review of the monetary policy, reduce repo rates and CRR to ensure effective transmission of the monetary policy,” the statement said.