Disturbed over falling industrial growth, slow movement of reforms, India Inc leadership convene in Kolkata under ASSOCHAM aegis

NEW DELHI ,AKASH DWIVEDI,Concerned over a deteriorating global economic situation and sharp drop in industrial production despite falling prices, India Inc ‘s top leadership is meeting in Kolkata tomorrow under the aegis of ASSOCHAM to brainstorm these issues and come out with  clear strategic inputs for the government.

“While there were concerns about slow pace of industrial growth, 4.2 per cent drop in the industrial production in October has come as a shocker of sorts for us. While we were in a party mood over declining energy prices, little did we realise that the phenomenon was a clear signal of the demand dip in most of the large economies of the world, including China, Japan , entire Europe.  Surely, our exports face a great challenge in the months ahead,” ASSOCHAM Secretary General Mr D S Rawat said.

He said the Managing Committee , the top organ of the chamber, would come up with specific suggestions for the government of Prime Minister Mr Narendra Modi . “While I do not want to pre-judge the deliberations, it was time some hard reality check  was done since the excitement about formation of the new government is behind us. The biggest challenge before the nation today is growth and employment generation which alone will enable us to reap dividends of the much-touted demographic advantage.”

The lone focus on the FII inflows and the Sensex would not suffice as the international capital flows can directions any time now and the rupee may come under pressure again. “We need to keep a close watch”. 

While the venue of these meetings keep changing, Kolkata is more relevant and pertinent since the industry leaders would be able to impress upon the Trinamool Congress, the Left parties and other political parties to come around and be on a common platform when it comes to crucial economic issues. 

“Some of the industry segments like consumer durables and non-durables are in real troubles.  New projects are not taking off, investment cycle is yet to revive….Cannot depend only on services to steer the growth.  The revival would require some bold measures and confidence building by the investors who would go around implementing the projects only if they see real progress on the ground. A cyclical turnaround in the energy prices alone would not help,” the chamber noted.

It said while RBI Governor Dr Raghuram Rajan has a point in seeking revival of the domestic demand, “ the ASSOCHAM would like to emphasis even if the world demand is subdued, we cannot lower guard on exports….We need to re-strategise our exports in the changing world. Concentrating on the domestic demand through Make For India and not Make in India approach would amount to looking inward.  We must continue to reach out to the rest of the world braving the headwinds,” Mr Rawat said.