The growth of the manufacturing sector, which is hit hard by the global financial meltdown, will fell to seven year low of 4.1% during the current fiscal ending March. The official advance estimates of the national income, which was released yesterday reveals that the growth rate of manufacturing sector will be halved to 4.1 per cent as against 8.2 per cent reported in the last fiscal. This will be the lowest manufacturing sector growth since 2001-02. The manufacturing sector, since September, has been hit hard by the financial meltdown along with the domestic demand slowdown and declining exports, leading to job loss in various sectors, especially textiles and other labour-intensive industries.
The index of industrial production in October 2008 entered the negative territory for the first time in 15 years. Since then the exports have been declining and the growth rate has remained in the negative zone. To deal with this, the government as well as the RBI have together taken a slew of measures that include four per cent cut in excise duty followed by raising the public expenditure and releasing about Rs 3.8 lakh crore into the system.
The index of industrial production in October 2008 entered the negative territory for the first time in 15 years. Since then the exports have been declining and the growth rate has remained in the negative zone. To deal with this, the government as well as the RBI have together taken a slew of measures that include four per cent cut in excise duty followed by raising the public expenditure and releasing about Rs 3.8 lakh crore into the system.
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