Press Esc to close
Wednesday 23 July 2014
News updated at 12:25 AM IST
Weather
Max: 28°C
Min : 21°C
In Bangalore
Sunny day

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
Telangana chief minister K.Chandrashekhar Rao presenting a letter of appointment...

Telangana chief minister K.Chandrashekhar Rao presenting a letter of appointment...

Sand artist Sudarsan Pattnaik created a sand sculpture on sexual assault of a 6 year old girl...

Sand artist Sudarsan Pattnaik created a sand sculpture on sexual assault of a 6 year old girl...

Prime Minister Narendra Modi receives Swami Vishvesha Tirtha of Pejawar Mutt, in New Delhi...

Prime Minister Narendra Modi receives Swami Vishvesha Tirtha of Pejawar Mutt, in New Delhi...

Mercedes Benz MD aand CEO Eberhard Kern at the launch of Mercedes CLA 45 AMG...

Mercedes Benz MD aand CEO Eberhard Kern at the launch of Mercedes CLA 45 AMG...

Children playing football in a waterlogged field after heavy rains at a village in Balurghat...

Children playing football in a waterlogged field after heavy rains at a village in Balurghat...

People enjoy a dip in temperatures at the Rajpath amid heavy shower in New Delhi...

People enjoy a dip in temperatures at the Rajpath amid heavy shower in New Delhi...

Abhishek Bachchan, owner of Pink Panther Kabaddi team, pose for a group photo...

Abhishek Bachchan, owner of Pink Panther Kabaddi team, pose for a group photo...

Women labourers cover themselves as rain showers lash at Ghatanji on the outskirts of Yavatmal...

Women labourers cover themselves as rain showers lash at Ghatanji on the outskirts of Yavatmal...

The Gaganachukki and Bharachukki Falls in full splendour following the of release of water...

The Gaganachukki and Bharachukki Falls in full splendour following the of release of water...

UNICEF Goodwill Ambassador, Roger Moore addressing at the UNICEF and Commonwealth Games...

UNICEF Goodwill Ambassador, Roger Moore addressing at the UNICEF and Commonwealth Games...

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