Quick action needed to boost investment in manufacturing: FM

Aug 31, 2012 |

New Delhi

Tags:

Concerned over declining performance of the manufacturing sector, Finance Minister P. Chidambaram on Friday said quick decisions were needed to remove bottlenecks hampering investments.

"Of course the decline of fixed investment is a source of concern to the government. It emphasises once again the need to take quick decisions to accelerate investment, especially removing all bottlenecks to investment in the manufacturing sector," he said in a statement.

Chidambaram was responding to first quarter Gross Domestic Product (GDP) numbers, which showed a growth of 5.5 per cent, down from 8 per cent in the corresponding period last fiscal.

The decline in the GDP was mainly on account of poor showing by the manufacturing sector where the growth rate decelerated to 0.2 per cent from 7.3 per cent in the same quarter in 2011-12.

Chidambaram, however, drew comfort from the fact that the quarterly GDP numbers were better on sequential basis.

The GDP registered a growth of 5.3 per cent in the fourth quarter (January-March) 2011-12. "After continuous reduction in the growth rate in successive quarters beginning in the fourth quarter of 2010-11, this is the first time when quarterly growth rate has exceeded the growth rate in the previous quarter," the Minister said.

At the same time, he added, there was also encouraging signs as the construction sector recorded a growth of 10.9 per cent, up from 3.5 per cent in Q1 of the last fiscal.

Post new comment

<form action="/comment/reply/185273" accept-charset="UTF-8" method="post" id="comment-form"> <div><div class="form-item" id="edit-name-wrapper"> <label for="edit-name">Your name: <span class="form-required" title="This field is required.">*</span></label> <input type="text" maxlength="60" name="name" id="edit-name" size="30" value="Reader" class="form-text required" /> </div> <div class="form-item" id="edit-mail-wrapper"> <label for="edit-mail">E-Mail Address: <span class="form-required" title="This field is required.">*</span></label> <input type="text" maxlength="64" name="mail" id="edit-mail" size="30" value="" class="form-text required" /> <div class="description">The content of this field is kept private and will not be shown publicly.</div> </div> <div class="form-item" id="edit-comment-wrapper"> <label for="edit-comment">Comment: <span class="form-required" title="This field is required.">*</span></label> <textarea cols="60" rows="15" name="comment" id="edit-comment" class="form-textarea resizable required"></textarea> </div> <fieldset class=" collapsible collapsed"><legend>Input format</legend><div class="form-item" id="edit-format-1-wrapper"> <label class="option" for="edit-format-1"><input type="radio" id="edit-format-1" name="format" value="1" class="form-radio" /> Filtered HTML</label> <div class="description"><ul class="tips"><li>Web page addresses and e-mail addresses turn into links automatically.</li><li>Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd></li><li>Lines and paragraphs break automatically.</li></ul></div> </div> <div class="form-item" id="edit-format-2-wrapper"> <label class="option" for="edit-format-2"><input type="radio" id="edit-format-2" name="format" value="2" checked="checked" class="form-radio" /> Full HTML</label> <div class="description"><ul class="tips"><li>Web page addresses and e-mail addresses turn into links automatically.</li><li>Lines and paragraphs break automatically.</li></ul></div> </div> </fieldset> <input type="hidden" name="form_build_id" id="form-00ac0f2adef2f19f08d26961ef607461" value="form-00ac0f2adef2f19f08d26961ef607461" /> <input type="hidden" name="form_id" id="edit-comment-form" value="comment_form" /> <fieldset class="captcha"><legend>CAPTCHA</legend><div class="description">This question is for testing whether you are a human visitor and to prevent automated spam submissions.</div><input type="hidden" name="captcha_sid" id="edit-captcha-sid" value="85605563" /> <input type="hidden" name="captcha_response" id="edit-captcha-response" value="NLPCaptcha" /> <div class="form-item"> <div id="nlpcaptcha_ajax_api_container"><script type="text/javascript"> var NLPOptions = {key:'c4823cf77a2526b0fba265e2af75c1b5'};</script><script type="text/javascript" src="http://call.nlpcaptcha.in/js/captcha.js" ></script></div> </div> </fieldset> <span class="btn-left"><span class="btn-right"><input type="submit" name="op" id="edit-submit" value="Save" class="form-submit" /></span></span> </div></form>