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Posted on Nov 13, 09:45PM | UNI
The negative growth reported by the manufacturing sector will adversely affect business sentiment, investment tendency and urgent government intervention is now necessary, Federation of Karnataka Chambers of Commerce today said.
FKCCI President K Shiva Shanmugam said the massive fall in the production of capital goods during September 2012 (-12.2 per cent growth rate) was worrying.
While the industrial growth in September over the corresponding month of the previous year was -0.4 per cent, manufacturing once again reverted back to the negative growth trajectory, being at a low 1.5 per cent growth.
"At this juncture the Reserve Bank of India should consider a downward revision in the interest rates. Negative industrial growth is adversely affecting business sentiment and investment tendency and the Government should immediately act towards regaining the same," he said in a statement issued here today.