A clear sign has emerged that India
is about to hit or has in fact already hit Industrial
Recession. The latest IIP (Index
of Industrial Production) figures released by the government last week indicate
that industrial production in India has taken a downturn. It’s been a cause for
concern that India’s industries are not growing at the same pace as the
services sector is. However for a country that has needs that can be met only
by industrial production; the low IIP figure is somewhat shocking and warrants
a cause for concern.
The Steel Industry across the
world is in a dilemma. Estimates show that the demand for steel has gone down
not because there is no need for it but rather because the feeder element of
the steel industry has been capped. As an industry, steel sales are directly
influenced by companies which require it for their purposes. When these
companies as part of an industry are themselves experiencing a tough time, then
they put projects on hold. It’s this that the steel industry has recognized as
the fundamental reason it’s started to experience a downturn.
The vicious circle of rising fuel
prices and inflation have significantly impacted all sectors of the Indian economy
but more so the industrial and manufacturing sectors. The IIP (Index of Industrial
Production) figures released on Friday along with Inflation figures for the
week ending June 28 have dealt a double blow to the Sensex.
A clear sign has emerged that India
is about to hit or has in fact already hit Industrial
Recession. The latest IIP (Index
of Industrial Production) figures released by the government last week indicate
that industrial production in India has taken a downturn. It’s been a cause for
concern that India’s industries are not growing at the same pace as the
services sector is. However for a country that has needs that can be met only
by industrial production; the low IIP figure is somewhat shocking and warrants
a cause for concern. 
The Steel Industry across the
world is in a dilemma. Estimates show that the demand for steel has gone down
not because there is no need for it but rather because the feeder element of
the steel industry has been capped. As an industry, steel sales are directly
influenced by companies which require it for their purposes. When these
companies as part of an industry are themselves experiencing a tough time, then
they put projects on hold. It’s this that the steel industry has recognized as
the fundamental reason it’s started to experience a downturn. 
The vicious circle of rising fuel
prices and inflation have significantly impacted all sectors of the Indian economy
but more so the industrial and manufacturing sectors. The IIP (Index of Industrial
Production) figures released on Friday along with Inflation figures for the
week ending June 28 have dealt a double blow to the Sensex. 