The figures for industrial production for October at 9.8 per cent against 3.6 per cent in September, is good reason to resolve to see that it is sustainable. The production figures were no doubt boosted by consumer goods that include durable and non-durables that registered a growth of nearly 22 per cent. But there was also growth in capital goods at 16.1 per cent and manufacturing at 10.6 per cent. This is a cause to cheer as it does seem like a revival even though sceptical analysts and so-called experts say it is non-sustainable as October was the month of festivals.
The government must without delay do all that is still left to create a climate where entrepreneurs and particularly the medium, small and micro sector can go forward with their business. Several studies show that they don’t get even 10-12 per cent of their working capital requirements and have to resort to high-cost borrowings. The government has been taking measures to facilitate the ease of doing business but it still remains piecemeal. Besides, corruption, particularly at the level of the states and local bodies that play a vital role in giving permissions, has not been controlled. There is no reason why this cannot be tackled with serious determination.
Whilst on the issue of industrial production, it would not be out of place to wonder why the government or the central statistical organisation gives so much importance to the auto production numbers when barely over 10 per cent of the population owns vehicles. One is not sure whether this distorts the index of industrial production numbers as there may be other mass consumption items that need to be included and given more weightage.
