Assocham asks RBI and Govt to take steps to revive growth

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The slowdown in manufacturing sector has Assocham worried, and to get the country back on growth trajectory, the industry body has asked RBI and the government to take initiatives to check the fall in production and revive growth.

In a study, Assocham said, "While the Finance Ministry has taken some encouraging steps to revive the investment sentiment, the efforts have to be supplemented by the RBI and different wings of the government."

The steps to boost the Indian manufacturing sector are necessary since it has been stuck in a vicious circle with declining investment coupled with contraction in consumer demand, which was reflected in the Septembers IIP data.

"For reviving investment the consumer demand is required, which itself is showing sluggish trend. The consumer demand is a function of increased employment which can be generated by increased employment," the study concluded.

Story first published: Friday, November 23, 2012, 11:30 [IST]
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