The industry is still sensing a hint of uncertainty on the economic growth front even though the industrial output rose 2.7 per cent in January and urged the government to pursue reforms to stimulate investments.
Industrial production bounced back in January, expanding by 2.7 per cent year-on-year mainly due to better performance by capital goods segment, a barometer of investment activities.
"The manufacturing growth, though positive in January, remains fragile and a cause for concern. The sector may see a revival in the coming months as a result of measures taken in budget and other areas," Ficci President Pankaj Patel said.
He said it is important to continue the reform momentum to boost investor confidence and stimulate investments.
The indices of industrial production for mining, manufacturing and electricity sectors posted growth rates of 5.3 per cent, 2.3 per cent and 3.9 per cent, respectively in January 2017.
Assocham President Sandeep Jajodia said the risks to the Indian economy continue to prevail owing to the uncertainty related to monsoon, protectionist policies adopted by the US, change in the policy stance by RBI from accommodative to neutral, muted growth in fixed capital formation in GDP and mounting bad debt in public sector banks.
The factory output measured in terms of Index of Industrial Production (IIP) in December had contracted by 0.1 per cent on account of cash crunch following demonetisation of high value currency notes.
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