New Delhi : Exports fall for two consecutive months and manufacturing growth falling to minus 3.7 were matters of concern said Dr Arbind Prasad, director general, FICCI. “It is worrisome that our exports fell by more than 3 per cent in each of the last two months and we have missed the export target of $325 billion.”
Looking ahead, global growth was expected to improve and the expansion in global output is likely to be led by developed economies, particularly USA.
But reduced trade deficit to $138.6 billion last year from over $190 billion in 2012-13 and was a positive development, Prasad said.
Manufacturing growth of negative 3.7% in February 2014 is the highest since October 2011. “Such a steep fall in manufacturing disproves that growth has bottomed out. Both consumer demand and investment conditions seem to be weakening thereby further dampening the outlook for manufacturing”, Prasad said
“Revival of manufacturing growth requires some bold reforms in the area of business regulatory environment which should be the focus and priority for the Government” he said.