Concerned over weak industrial production: Anand Sharma

Expressing concern over the weak industrial production and higher cost of credit for industry, union minister for commerce and industry and textiles, Anand Sharma, says a joint task force of the industry and government would meet on 19 December 2011 under the chairmanship of the finance minister. The meeting of the joint task force would be followed by a meeting on industry and trade with the prime minister, where the future course of action would be decided.

Sharma noted with concern the decline in the growth of industrial output, which hit a low of 1.9 per cent in September, has been witnessing a declining trend during the year. Additionally, the slow economic growth, recorded at 6.9 per cent in the second quarter was another cause for worry.

"In the month of July, for two consecutive days, we met with the captains of the industry, and we decided as a government to set up a joint task force between the government and the industry for a structured dialogue. The first meeting was held in August, while I have called the meeting of the joint task force again on 19 December," Sharma said on the sidelines of an event held at National Institute of Design (NID) in Ahmedabad on Saturday.

He mentioned that during the first meeting, chaired by the finance minister, at which the commerce minister was also present, industry captains had raised issues faced by them that had led to the decline in the industrial production, specifically in the core sectors and manufacturing and mining.

Sharma had taken on board industry leaders like Venu Srinivasan of TVS Motors, Harsh Pati Singhania, Sanjay Kirloskar and Rajiv Kumar from Ficci in the task force.

"After the dialogue and the meeting of the joint working group, I will again be discussing (the issues of industry), with both the prime minister and the finance minister, with the prime minister chairing the meeting on trade and industry," Sharma said.