CLE India urges government to act on high costs
The Indian manufacturing industry has demanded immediate government action to prevent further decline in the sector. According to latest official figures, the sector’s growth slowed down to 5.5% in the quarter ended March 31, 2011, from 15.2% in the same quarter of 2009-10. Also, the sector’s growth for the whole fiscal slowed down to 8.3% from 8.8% in 2009-10.
Reacting to the recent data, which clearly reinforces the impression of a gradual slowdown in the manufacturing sector, the Council of Leather Exports (CLE) viewed that high costs of power and its non-availability, rise in petroleum and raw materials prices had caused the slowdown. “I think this should be looked into and the costs of manufacturing should come down,” CLE Chairman M Rafeeque Ahmed told local media.
Recently, several industry bodies including the PHD Chamber and the CII have also expressed concern over decline in manufacturing sector’s growth. CII Director General Chandrajit Banerjee had even cautioned that the steep rise in interest rates would continue to have an impact on growth of not only the manufacturing sector but also the economy in the current financial year.
