Consumer durables are still in trouble with a negative trend prevailing indicating a link between high interest rates and the demand depression. Though here also, the damage seems to have been checked somewhat because the minus trend has improved from (-) 7.5 per cent in January, 2012 to (-) 0.9 in January this year.
As many as 11 out of the 22 industry groups have shown positive trend, but the concern is that at least half of the industrial sub-groups are still battling. Under these circumstances, it can only be said with some positive bias that the worst seems to have been over.
But the industry needs a lifeline in terms of demand regeneration which will have to come from the Reserve bank of India through policy interest rate cuts, adds the ASSOCHAM.
"ASSOCHAM will urge the RBI not to get too much influenced by the Consumer Price Index (CPI) released today as the high CPI is a function of high food prices which are not influenced by credit supply. On the other hand, several segments like the automobile - commercial vehicles, cars, are bleeding," chamber President Rajkumar Dhoot said that CPI numbers which have been released today when it reviews the credit policy next. The CPI numbers are not the core inflation which is on a downward trajectory in term of wholesale price index.