The statement came after the index of industrial production (IIP) for the month of May contracted by 1.6 per cent in May versus a growth of 1.9 per cent for the previous month.
Commenting on the IIP data, Chandrajit Banerjee, Director General, CII termed the May 2013 IIP numbers as disappointing and a cause of serious concern. The IIP figures, which have entered the negative terrain for the first time during the year shows that the slowdown has not yet bottomed out.
Banerjee said that steep decline in manufacturing and mining sectors is of major concern and show the level of faltering investments and sluggish demand.
He also said that the prevailing situation requires the government to show a strong resolve to push through reforms which would boost investment and reactivate demand. Policy action would have to be supported by administrative pro activity by clearing projects which are held up owing to various clearances not having come through, Banerjee said.