Drastic
fall in industrial production is a cause of concern. Due to
poor performance of mining, factory and power sector this
year industrial production has come down to 3 per cent, minimum
level in six years. Last year in the same period it was 14.6
per cent. Rise in prices and inflation and due to the sub
prime crisis the industrial sector is witnessing slowdown.
According to Statistics and Programme Implementation Ministry
which issues data, in the last financial year ie from April
to March 2008 the industrial production reduced from 11.6
per cent to 8.1 per cent. In the manufacturing sector in comparison
to 16 per cent a slowdown of 2.9 per cent was seen. Last year
during the fiscal year the growth rate of manufacturing sector
reduced to 8.6 per cent from 12.5 per cent. In the production
of metal and machinery 25.8 per cent fall was registered.
5 per cent slowdown was registered in cloth industry. Production
of power sector during the period reduced to 3.7 per cent
from 7.9 per cent. Deputy Chairman of the Planning Commission,
Montek Singh Ahluwalia says that there is no need to be concerned
over the fresh data of industrial development. Our industrial
development is not under the limit of 8 or 8.5 per cent. But
due to the industrial slowdown its solution is necessary to
seek. But, in reality the government did not give any relief
in the prices of raw materials and high debt to the industrial
sector. Inflation, increase in rate of interest, strong rupee
and sub prime crisis are the causes for fall in industrial
development. Lack of tendency in taking loan from banks due
to increase in rate of interest is a big cause of it. The
tendency of purchasing among the consumers is decreasing.
It is definite that industrial slowdown would affect the speed
of progress. The government should take initiative to curb
this serious condition. According to the experts, in such
conditions the government should reduce rate of interest and
a favourable atmosphere should be created.
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