The industrial output in the country is likely to remain under pressure in the forseeable future as exports are unlikely to recover anytime soon, global financial services major Moody's said today.
"India's industrial outlook will remain dire until there are signs of improvement in export prospects... It is almost impossible for local manufacturers to maintain their previous production levels," said Moody's economy.com, a subsidiary of Moody's group.
It said exports are unlikely to recover any time soon, as major markets such as the US and Europe are still in bad shape.
Industrial production contracted by 1.2 per cent in February, compared to a growth of 9.5 per cent a year ago, despite stimulus packages announced by the government.
It had turned negative in October last year for the first time in 15 years, as manufacturing, which comprises around 80 per cent of the industry, shrank to 1.2 per cent growth in October from a whopping 13.8 per cent a year ago.
Moody's, as well as another global major Goldman Sachs, said that the fall was as expected, while Citigroup termed the it was more than anticipated.
Moody's said that domestic sector may provide some support to local manufacturers citing fiscal stimulus measures, some of which relate to infrastructure development.
---
(source:PTI)
No comments:
Post a Comment