Wednesday, December 21, 2011

Downward Growth Forecst by Moodys

Both domestic and global factors are indicated to be responsible for moderation in the low growth forecast of the economy in 2011-12. These among other, include high inflationary tendencies, low capital formation, moderation in industrial growth and global economic uncertainty.

Government has already taken some confidence building measures. The major focus areas include promotion and facilitation of industrial investment including foreign direct investment ; improvement in business environment; development of industrial and other infrastructure through public private initiatives, incentivizing research and development; and development of industry related skills. Government in November, 2011 also announced a National Manufacturing Policy, which aims at making Indian industry globally competitive.

This information was given by Shri Jyotiraditya M. Scindia, Minister of State for Commerce and Industry in written reply to a question in the Rajya Sabha today.

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