While Indian business scenario is still considered to be at a threshold of economic recovery, experts are witnessing some positive signs for growth.
Commenting on the index of industrial production for April 2015, Mr Chandrajit Banerjee, Director General, CII stated, “The strong output performance of industry is an indication that recovery is firmly taking roots and turnaround in the investment cycle is imminent.” The figures, which are above market expectations, indicate that green shoots of recovery are currently underway which is also evident by the higher excise duty collections during the month, stated Mr Banerjee.
A major positive is the turnaround of the consumer goods segment, especially the consumer durables sector which has displayed positive growth after being in the red during the last year. The performance of the capital goods sector is also notable. The uptick in car sales in April, as also a rise in order pipelines of corporates revives hopes that the economy is on the mend. Going forward, CII is hopeful of growth picking up pace backed by positive sentiment and a flurry of policy initiatives undertaken by the government.
The only mantra for the economic revival is to boost the buying capacity of common man. This buying capacity or spending power can only bring back the economic recovery of the country and this can only be achieved with common consumers get assurance of income stability as well as income growth. Although it is a tricky situation for the policymakers, but Modi Government, which is getting considered as the drivers of economic reforms, have the priority to revive the Indian industry and manufacturing segment.