PTI quoted a CII survey saying that a majority of units in the manufacturing sector are expected to register low to negative growth in the October to December quarter of this year, mainly due to high interest rates and increasing prices.
The CII Ascon survey, which has tracked growth of about 110 sectors, said that the percentage of sectors reporting low to negative growth has increased to 56.4% during the quarter from 48.6% in the corresponding period last year.
It said that those sectors reporting negative growth also moved up from 17.1% to 20.8% during the same period.
It added that he expectation of a recovery in industrial performance has been belied against the backdrop of a slew of economic reforms announced by the government.
The survey has indicated greater percentage of sectors reporting low to negative growth in October to December quarter of the current year over the corresponding period of last year.
It points to a continuation of the slowdown as the positive results of the recent reform measures announced are yet to take effect.
It further added that "A commensurate action is now required from the RBI in the form of reduction in repo rate to ease the monetary situation. The industry is in need of a combination of fiscal, monetary and administrative measures."
