By IANS,
New Delhi : The Indian government is taking all necessary steps to create a conducive environment which would help sustain the industrial recovery and growth momentum of the economy, Commerce Minister Anand Sharma here Friday.
“I am confident that in partnership with industry, academia and all stakeholders, we will be able to create a conducive environment, which would sustain the momentum of our economy and manufacturing in particular,” Sharma said, addressing the members of the consultative committee of his ministry.
The agenda of the meeting was ‘Indian industrial production in the wake of global economic crisis and the performance of manufacturing sector’.
Sharma said the government is well aware of the industry’s concerns over appreciating rupee, hardening interest rates, inadequate availability of physical infrastructure and shortage of critical skills.
“The government is conscious of these constraints and is taking calibrated steps to have a judicious policy mix that would sustain industrial recovery and at the same time result in fiscal consolidation,” he said.
On the manufacturing sector’s growth, he said sustained recovery of the sector is encouraging and the Indian economy “cannot ignore the sector. A modern manufacturing sector is essential for the development of our economy”.
The manufacturing industries, particularly textiles handicrafts, leather, gems and jewellery and auto components, were hit due to the slowdown in the second half of 2008-09.
To counter the adverse impact of the global slowdown on the Indian economy, appropriate fiscal and monetary policies were initiated.
The Indian government announced fiscal stimulus amounting to Rs.186,000 crore.
“As a combined impact of various fiscal stimulus measures and the supporting monetary policy the industrial sector was able to reverse the declining trend in its growth since June 2009. Industrial growth continued to become strong and broad based and was particularly buoyant in emerging segments,” he said.