Finance minister Mr. P Chidambaram yesterday released the IIP data , the data showed the relative fall of levels from 12% to 7.5% in the current quarter , if we compare it with the same time period at the corresponding year then the index was close to 11.6 % .
Well the relative slowdown in the industrial production has been largely attributed to the growing cost of raw materials , high production arising due to sky rocketing fuel prices and the falling dollar prices against the rupee.
Predominantly India has been a Service sector driven economy, but it has to be noted that the strong industrial production has to be mainatined to sustain 8- 9 % annual GDP growth . Without a strong manufacturing sector the growth rate is not sustainaible, also it would also result in India becoming a more imort oriented country which would again hurt India.
So to sum up , the productions might be down but lets hope that its just a temporary phenomenon and this should not last long to hurt Indian Manufacturing sector .
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