FICCI has been pointing out that interest rates at the retail level have not yet been fully adjusted. Unless the lending rates are brought down to single digit levels, economic recovery will take a long time, he added.

The disaggregated IIP figures indicate that while manufacturing sector had contracted earlier, the latest figures show that the slowdown is having an impact even on the mining sector, which contracted by close to half a percent. The silver lining is consumer durable sector which grew by 2.5 per cent in the month of January 2009.

On the issue of implementation of stimulus packages, FICCI expressed hope that the Election Commission would ensure that routine government procedures would move on and not be affected during the election phase.

“FICCI has formed a 10 member committee to monitor the implementation of the various stimulus measures announced and we have also sought time with the Election Commission to impress upon the importance of immediate implementation of the announced measures,” said Singhania.

“FICCI would once again urge the monetary authorities to interact closely with the bankers for a cut in lending rates to bring around a recovery in investment and consumption demand. The interest rates should be cut to single digit levels, more so as inflation has further come down to 2.43 per cent according to the latest numbers,” he added.