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Industrial output slowdown should worry us
The review is about industrial output statistics released on Friday, pointing to negative zone in five months for the first time. It is time that government stands up and takes right decisions..
THE NEWS from industrial front on growth rate slow down has added further woes to the already ailing Indian economy - according to a survey, industrial output has declined to -3.5 percent in the month of March. The reason for slowdown is mining, manufacturing of capital goods as output dropped to - 21.3 percent during the same period. This is for the first time the industrial output fell to negative in five months.
 
While the index of industrial production (IIP) was 9.4 a year ago, in February it was 4.1 percent. According to Central Statistical Office, on Friday the industrial growth in April – March stood at 2.8 percent compared to 8.2 percent during the same period last year. Giving details of break up, the output in the mining sector dropped by 2 percent in March compared to 5.2 percent growth in previous fiscal year. It further stated that the manufacturing sector grew by 2.9 per cent compared to growth of 8.9 percent during same period last year.
 
While commenting on the figures, the Finance Minister said that the results were disappointing and added that it is primarily due to slow growth in the Western economy. Agreeing with his colleague, the Commerce Minister said the results were bad and urged the RBI to take a decision on differential credit rate for manufacturing sector and credit availability for domestic industry and dollar credit for exporters. 
 
According to many experts the slowdown in growth to negative is surprising. It is a wakeup call for government that unless it takes tough measures the economy will derail further. The time has come for government to take strong decisions. Let us hope the government takes correct decisions.
Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of merinews.com. In case you have a opposing view, please click here to share the same in the comments section.
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