Business Standard reported that senior executives of the country’s leading manufacturing companies are optimistic that the industrial sector, currently reeling under economic slowdown, could return to high growth trajectory with a change in ecosystem and policies.
The study, prepared by the Confederation of Indian Industry and Boston Consulting Group said that “Over 69% of respondents believe growth of over 9% is possible with a change in ecosystem and policies.”
The study includes a survey of 70 senior management executives from top Indian manufacturing companies. 13% of the respondents said they foresaw a growth of 9% and above, while 47% felt the growth would be in the range of 5% to 7% in the next 5 years. The industrial output in the country witnessed constant slowdown in the H1 of the current financial year. However, the output saw a growth of 8.2% in October.
On the persisting slow growth in recent months, the report said that “This under performance ironically comes after a period when the government announced the National Manufacturing Policy.”
The policy has a vision for manufacturing to grow 2% to 4% faster than gross domestic product to reach a share of 25% of the economy by 2022, along with creating 100 million new jobs.
According to the report, the government and the industry should look for out of that box solutions for land issues and labor reforms and building innovation at company levels.
