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Survey blames bureaucracy for economic woes

ECONOMIC SURVEY

The Economic Survey on Friday expressed concern over slowdown in the industry, mainly due to poor showing of the manufacturing sector and asked the government to cut bureaucracy and ensure easy and affordable finance to the industry.

At the same time the survey, cautioned the industry against seeking too much protection saying "the endeavour should be that the Indian industry must be an efficent and competitive one, which is able to stand on its own in the face of foreign competition".

Industrial growth rate during the period April-December 2000-01 was 5.7 per cent compared to 6.4 per cent in the same period last year.

The survey blamed lack of domestic demand for intermediate goods and inventories coupled with low growth in infrastructure and prevailing high interest rates for the slowdown and said, "the downward trend in the growth rate of capital and intermediate goods indicates investment decisions are not getting firmed up".

Investment revival and capital goods production are critically dependent on expectations about the future growth of the economy, expected competition both domestic as well as imports, cost structure, technical changes and expected profitability of investment, the survey said.

PTI

Economic Survey 2000-2001
Budget 2001
Money

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