Home / Knowledge / News / Sept IPP growth rate difficult to sustain - Amit Mitra, FICCI
Sept IPP growth rate difficult to sustain - Amit Mitra, FICCI
14
Nov '08
“The 4.8% growth rate in manufacturing in September 2008 is more encouraging than the growth in August 2008 which was 1.1.%. But this growth is difficult to sustain or pick-up in the coming months in view of the production cuts recently announced by some of the major corporates in real sectors like steel, auto etc. and also because of the weakening export demand in sectors like textiles”, said Dr Amit Mitra, Secretary General, FICCI.

FICCI observed that the latest figures of IIP are indeed a matter of serious concern because many employment intensive industries in the real sector like cotton textiles, apparels, jute and other vegetable fibres, wood, furniture, leather and leather products etc. have shown negative growth in September. Most of these sectors are dominated by SME players and also some of these sectors are heavily dependent on exports. Since the global demand is weakening further fall is expected in these sectors which would affect the SME sector in a major way.

The key interest rates that were raised sharply in stages during the last one and a half years have affected the growth of India's industrial sector. FICCI believes that while RBI has reduced the key rates recently, there is still ample scope for further cuts in the key policy rates. Even today average interest rates being charged from industrial borrowers is in excess of 13% which is prohibitively high to sustain investment rate of the last few years. Also, measures are required to boost exports by providing credit to the exporters at international rates and restoration of the interest subvention scheme for the exporters.

“All this underlines the need for appropriate interventions in the industrial and export sector on immediate basis, particularly for the SME sector”, Dr Mitra emphasised.

FICCI


Must ReadView All

Equate posts best Q12018 results since inception

Textiles | On 21st May 2018

Equate posts best Q12018 results since inception

Equate Group's first quarter results for 2018 are the best since its...

Maharashtra govt to help textile units set up solar plants

Textiles | On 21st May 2018

Maharashtra govt to help textile units set up solar plants

The state government of Maharashtra has formed a panel to help set up ...

Over 60% retailers already have IoT platforms: IDC

Apparel/Garments | On 21st May 2018

Over 60% retailers already have IoT platforms: IDC

Retail organisations are adopting IoT platforms and more than 60 per...

Interviews View All

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search