Wednesday 24 October 2012

Manufacturing Sector in India -Part 4


India’s manufacturing sector was steady last month (September 2012) as it enjoyed support by stronger manufacturing growth and climbing export orders, according to survey. HSBC Chief Economist for India and the ASEAN Leif Eskesen said, “Economic activity in the manufacturing sector held steady supported by faster output growth and rising export orders.  The opinion of some of the business analysts are India will witness considerable rise in manufacturing cost due to the threat from high food prices and sticky inflation in India. Since government has clarified that economy will grow at 6.5% during FY13 and inflation will vary around 7.5-8%, manufacturing cost will impact the productivity of other sectors.  Dr GS Juneja, chairman, task force on MSME, PHD Chamber of Commerce and Industry, said, “The cost of manufacturing will grow. The sector will face some problems as manufacturing cost will raise the cost of other sectors as well.” Prime Minister's Economic Advisor C Rangarajan said that Centre stated that it is taking initiatives to redress the situation of poor industrial growth.

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