Industry favours more rate cuts to stimulate demandFebruary 8th, 2009 - 7:03 pm ICT by IANS
New Delhi, Feb 8 (IANS) A leading industry lobby, the Confederation of Indian Industries (CII) Sunday said it favoured further cuts in interest rates to stimulate demand and help arrest slowdown in the manufacturing sector.
“With inflation declining, conditions are favourable for further cut in interest rates to stimulate demand and help arrest further slowdown in the manufacturing sector”, CII director general Chandrajit Banerjee said, referring to the findings of a CII study.
According to the study, more than 78 percent of the industrial sectors are in low and negative growth category, with 32 manufacturing sub-sectors reporting negative growth between April and December last year, as compared to the similar period in 2007.
The sectors that saw growth declining the most included castings, synthetic fibre, textile machinery, commercial and utility vehicles, edible oil and compressors, it said.
However, a few sectors such as cement, tractors, electric fans, and auto manufacturing, including mopeds, scooters, cars, motorcycles and automotive tyres, recorded moderate growth.
Consumer durables registered more than 10 percent growth in production.
On the export side, 11 out of 23 sectors reported negative growth, CII said.