Press Esc to close
Friday 06 March 2015
News updated at 2:32 AM IST
Weather
Max: 31.7°C
Min : 16.9°C
In Bengaluru
clear sky

Factory output dips 0.4%

New Delhi,Nov 14, 2012 pti:

India Inc seeks rate cut by RBI

 Belying hopes of an early economic revival, industrial production contracted by 0.4 per cent in September on account of dismal performance of manufacturing and capital goods sectors, prompting India Inc to press for interest rate cut by the Reserve Bank of India (RBI).

The industrial output growth rate turned negative in September after showing 2.3 per cent growth in the previous month. The Index of Industrial Production (IIP) was at 2.5 per cent in the corresponding period of last year.

Terming the decline in IIP as “very disappointing”, Planning Commission Deputy Chairman Montek Singh Ahluwalia said the data did not reflect the impact of recent reform initiatives which would manifest in the later part of the fiscal.

Prime Minister’s Economic Advisory Council (PMEAC) Chairman C Rangarajan said it was disappointing to see IIP slipping into negative after showing signs of improvement in August and hoped that things would improve in the coming months. After the poor industrial output in September, he said the economic growth could be in the region of 5.5 per cent.

CII stepped up its demand for 0.5 per cent cut in interest rate by the RBI saying “a complete sacrifice of growth is not in the interest of the economy”.

It also wanted reduced repo rate and CRR by another 0.5 per cent each.
Ficci President R V Kanoria called for implementing big ticket reforms, expediting infrastructure projects and easing monetary policy to bring the economy back on track.

“At this juncture, it is important that the government does not lose momentum on the reform front,” he said.


Go to Top

Photo Gallery
Rajnath Singh celebrates Holi with Delhi BJP Chief Satish Upadhyay and party leader Vijay Goel...

Rajnath Singh celebrates Holi with Delhi BJP Chief Satish Upadhyay and party leader Vijay Goel...

Hema Malini reacts as an MP smears Gulal on her forehead ahead of Holi celebrations...

Hema Malini reacts as an MP smears Gulal on her forehead ahead of Holi celebrations...

People sing and dance while celebrating Holi, the Festival of Colours, in Kathmandu...

People sing and dance while celebrating Holi, the Festival of Colours, in Kathmandu...

Narendra Modi being presented with the autographed tennis racquets of Leander Paes and Martina...

Narendra Modi being presented with the autographed tennis racquets of Leander Paes and Martina...

Widows daubed in colours chant religious hymns as they take part in the Holi celebrations...

Widows daubed in colours chant religious hymns as they take part in the Holi celebrations...

Tourists celebrate Holi in Jodhpur on Wednesday...

Tourists celebrate Holi in Jodhpur on Wednesday...

A child during Holi celebration in Alipurduar on Thursday...

A child during Holi celebration in Alipurduar on Thursday...

Stranded trucks wait for the re-opening of the Jammu-Srinagar highway, at Nandni near Jammu...

Stranded trucks wait for the re-opening of the Jammu-Srinagar highway, at Nandni near Jammu...

Tennis star and ambassador of Earth Hour 2015, Sania Mirza signs a poster during a press meet...

Tennis star and ambassador of Earth Hour 2015, Sania Mirza signs a poster during a press meet...

People watching the wreckage of the Jaguar fighter aircraft...

People watching the wreckage of the Jaguar fighter aircraft...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523