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Apex industry bodies were cautiously optimistic on growth and said the August data for the Index of Industrial Production (IIP) show hopeful signs of a bottoming out of the slowdown.
Factory output grew at a better-than-expected 2.7 per cent in August on the back of some base effect and improved performance on the manufacturing and consumer goods front.
R.V. Kanoria, President, FICCI, said “We hope that the growth has bottomed out in July as we can see some upturn in mining and manufacturing sector in August.”
However, a sharp drop in electricity production was a cause of concern for the industry bodies, even as they pressed for more reform measures.
“While the recently announced reform measures have revived business confidence to some extent, what is required now is a commensurate action from the RBI with a cut in repo rate. This has become a necessity now to kick start the investment cycle,” said Chandrajit Banerjee, Director-General, CII.
“The proposed National Investment Board under the chairmanship of the Prime Minister to resolve ground level issues related to large projects could certainly help in speedy clearance of projects and stimulating industrial growth,” said Kanoria.
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