Concerned over the decline in exports and contraction in industrial output in June, Commerce and Industry Minister Anand Sharma will hold consultations next week with various industry associations.
“The minister will hold stakeholder consultations next week in the light of recent IIP figures and the evolving industrial situation,” a Commerce Ministry statement said.
As part of the consultations, Sharma would meet officials of Federation of Indian Chambers of Commerce and Industry ,Confederation of Indian Industry and Federation of Indian Export Organisations.
Sharma’s meeting with industry chambers comes in the backdrop of industrial output in June slumping by -1.8% on the back of poor performance in the manufacturing sector and worsening economic situation.
He has also convened a meeting of the joint task force, set up in July, to review the situation and suggest remedial measures.
On Thursday, Sharma had met Finance Minister P Chidambaram and discussed issues relating to exports and imports situation, trade deficit and industrial output.
GDP growth has faltered to a nine-year low of 5.3% in the quarter ended March 31 with both overseas and domestic corporate investors deterred by high interest rates and policy gridlock.
Reforms too have been stalled on fears of a political backlash to steps such as allowing FDI in multi-brand retail, while a drought in some parts of the country makes it harder to cut fuel subsidies blamed for a widening fiscal deficit.
Compounding problems further, India’s export growth declined 5.45% to $25 billion in June for the second month in a row on slowdown in demand in western markets.