Press Esc to close

Factory output dips 0.4%

New Delhi,Nov 14, 2012 pti: 22:57 IST

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

More from this section
Photo Gallery
Rebel AAP MLA Kapil Misra and BJP MLA Manjinder Singh Sirsa after putting anti-pollution masks on...

Rebel AAP MLA Kapil Misra and BJP MLA Manjinder Singh Sirsa after putting anti-pollution masks on...

IAF planes display an air show during presentation of standards to the 117 Helicopter Unit and 223..

IAF planes display an air show during presentation of standards to the 117 Helicopter Unit and 223..

Forest employees and locals capture a leopard in a cage after it strayed in a village of Udhampur..

Forest employees and locals capture a leopard in a cage after it strayed in a village of Udhampur..

Activists of the Kisan Mukti Sansad hanging dummy bodies of farmers from a flyover during a...

Activists of the Kisan Mukti Sansad hanging dummy bodies of farmers from a flyover during a...

Indian Air Force personnel perform during presentation of standards to the 117 Helicopter Unit...

Indian Air Force personnel perform during presentation of standards to the 117 Helicopter Unit...

A snow cutter machine clears the road after heavy snowfall at Peer Ki Gali in Poonch...

A snow cutter machine clears the road after heavy snowfall at Peer Ki Gali in Poonch...

Students having a view of robots displayed at a stall at

Students having a view of robots displayed at a stall at "20th Bangalore Tech Summit" in Bengaluru..

Russian artists perform a play in Gurugram on Thursday.

Russian artists perform a play in Gurugram on Thursday.

Foreign athletes pose for a group photo during a press conference ahead of the Delhi Half Marathon.

Foreign athletes pose for a group photo during a press conference ahead of the Delhi Half Marathon.

Bollywood actress Vidya Balan during a promotional event in Mumbai on Thursday.

Bollywood actress Vidya Balan during a promotional event in Mumbai on Thursday.

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.