INDIA: Decline in Manufacturing of Cotton Textiles
Concerns were raised by CII Manufacturing Council with respect to the growth rates of manufacturing. According to IIP figures released, the growth for the manufacturing has declined to 8.3% from 12.5% over the same period last year. Similarly electricity has dropped to 6.4% from 7.2% with overall decline to 8.1% from…
Egytex News Desk
Egytex
The downtrend in the growth performance prevailed over the last year due to various much talked about reasons like high inflation, rupee appreciation and high interest rates. Manufacturing sector was hit due to increase in raw material prices, increase in wage bill due to high competition and well known bottleneck with respect to infrastructure.
Manufacturing suffered a double whammy as it also suffered on account of low consumer spending as hike in interest rates made consumers defer their purchase and thus affecting the industrial output.
There is urgent need to build infrastructure, create institutions and policy for Advanced Manufacturing and Engineering, remove bottlenecks with respect to power costs and labor laws.
CII Manufacturing council has also suggested a 10-point strategic agenda for taking manufacturing to a new growth plane.
Source: Confederation of Indian Industry
From the Egytex news archive, first published on 13 May 2008. Figures and names are as reported at the time.
