New Delhi: Industry body ASSOCHAM said the Index of Industrial Production (IIP) figures released today clearly show stagnation in the industrial economy and there is no improvement from earlier in the year.

“Going into the disaggregated sectoral figures, the picture is that of definite shrinkage in critical areas. Capital goods are in the negative zone, so also basic goods and intermediate goods.  All are contracting at varying speeds”, said Mr. D S Rawat, Secretary General ASSOCHAM.

Consumer durables and non-durables are hardly growing, at 1.4% and 0.1%, respectively. These sectors should grow in the coming festive seasons, added Mr. Rawat.

However, the backbone of India’s industrial economy is sliding, reflecting the serious cut-back in investment levels. These need to be reversed if we are to avoid a full blown recession. If the RBI still follows a restrictive policy, then such an outcome might be unavoidable next year. What is needed is a rest of policies and some booster to kick start industrial growth, adds the ASSOCHAM.