Monday, February 25, 2013

There is no denial of the fact that the Indian economy is in bad shape. Industrial production has come down. GDP growth has come down to its lowest level in a decade. Foreign direct investment (FDI) has slowed down. And now fresh order flows of domestic companies has pointed to a deepening slowdown in the Indian economy. Indian companies' new order inflows in the quarter ended 31st December, 2012 stood at the lowest level in nearly four years. The slowdown is worse in investment-related sectors like construction, infrastructure and power. The dire need of the industry is the availability of cheap capital by way of cut in the interest rates by the Reserve Bank of India (RBI). The government should also provide policy measures to boost growth.