Unless interest rates are brought down, we are not going to see much improvement in the index in the near term as this is important to stimulate demand and revive investments," Kidwai said as per the PTI report.
Terming the negative growth in industrial performance as "disappointing", CII Director General Chandrajit Banerjee said: "The decline in industrial production casts a shadow on hopes that the economy has bottomed out and there would be a turnaround in industrial activity in the second half of this fiscal".
"It is important that the RBI takes cognisance of the steep slide of industrial production and reverts to the accommodative monetary policy to revive demand," he added.
Describing the country's macro-economic picture as "quite grim", industry body Assocham called on the government to make effective and decisive policy interventions.
"The manufacturing and mining remain in a shambles while further disaggregation of IIP data portrays a very sorry state of affairs. Industry after industry is showing sizeable degrowth, signalling possibility of job losses," Assocham Secretary General D S Rawat said.
"Negative IIP growth rate and volatility in macro economic situation month after month is raising concerns. The pending and slower reforms outlook has impacted the industry growth prospectus and the situation is turning from bad to worse," President of PHD Chamber of Commerce, Suman Jyoti Khaitan, said.
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