Describing the continuing economic gloom, as reflected in the IIP data, as worrisome, State Bank of India Chairman Pratip Chaudhuri today said it is time policy makers “wake up” to take urgent corrective steps.
The chairman of the nation’s largest bank stressed the need to give more attention to the industrial sector, saying all major economies in the world have grown on the back of their manufacturing prowess.
“This (the slowdown in growth) is very worrisome ... I think the industrial sector really needs attention and the IIP growth at 2 per cent for April, (while) we have been expressing satisfaction that GDP growth is at 5 per cent,” he said.
To a question on poor industrial growth in April, he said, “The industry component at 2 per cent is a great matter of worry. Everybody, the policy makers, as also people in the field need to give it a thought. The low IIP growth which has been happening for the past one year, its time we wake up to that,” he added.
When asked if reports of green-shoots emerging on the growth front are belied by today’s IIP readings, he said the latest numbers call for “a reality check” as just having an optimistic view will not serve the purpose of reviving growth.
“Optimism is always good, I would share the optimism. But from time to time, we should do a realty check, whether the optimism is correct.”
He also said there is no reason to doubt the veracity of the IIP numbers given the fact that statistical techniques have evolved a lot in recent past.