Imports from China harming Indian manufacturing sector: AM Naik, L&T.

NEW DELHI: Blaming the unabated imports from China, for the slowdown in the Indian manufacturing sector, AM Naik, Chairman of L&T told ET Now that 'zero duty' policies adopted for Chinese goods form a significant part of the reason for problems in manufacturing.

Talking in context to the dismal Gross Domestic Product ( GDP) growth rate numbers for the fourth quarter Naik said that while the Indian government was propagating the withdrawal of subsidies, China's attempt to subsidise its products with their currency was harming the factory growth in India.

Commenting on Prime Minister Manmohan Singh's assertion of creating 20-25 million jobs every year, at a BRICS countries meet, Naik said the country's policies have resulted in creation of 10-20 million jobs in China instead.

He was of the opinion that while the power equipment sector can create millions of jobs in India, imports from China were quelling any such opportunities. "If you continue to follow this policy while wanting to withdraw the subsidies from India but indirectly tolerate all subsides from China this will happen," he said.

India's economic growth rate slipped to 5.3 per cent in the fourth quarter of 2011-12, lowest in nearly 9 years due to poor performance of the manufacturing and farm sectors.

During the quarter ending March 31, growth in the manufacturing sector contracted to 0.3 per cent, from 7.3 per cent in the corresponding period of 2010-11.

Farm output also exhibited a similar trend and expanded by just 1.7 per cent during the quarter, compared to 7.5 per cent in the Q4, 2010-11.

However, mining and quarrying production growth stood at 4.3 cent during the quarter under review, as against a growth of meagre 0.6 per cent in Q4 of in 2010-11.

Growth in the construction sector slowed to 4.8 per cent during the January-March quarter of 2011-12, from 8.9 per cent in the year-ago period.

Source : economictimes.indiatimes.com