Flagging infrastructure growth worries industry chamber

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New Delhi, Sep 13 (UNI) Industry chambers today were unanimous in voicing their concerns on the slackening growth of infrastructure sectors in July and its impact on the overall growth of the economy.

Industry chamber Ficci said the slow growth of six infrastructure sectors in July this year will decelerate the overall growth of the economy.

It said that the infrastructure bottlenecks have been an impediment on the operations of the Indian industry and the further slowdown of the infrastructure sector will create fresh constraints.

Ficci suggested that to maintain the growth trajectory the growth process in electricity, steel and coal is imperative.

Assocham likened the slowdown in coal, steel and petroleum refining output in the month of July 2007 as a result of shrinkage in demand supply due to India's economic expansion and predicted a reversal in it, hoping that the projected growth rate of nine per cent would still be achievable.

Assocham President Venugopal N Dhoot said in a statement that the performance of key sectors such as crude petroleum and petroleum refinery products, electricity, cement and finished steel registered a negative growth was because of demand exceeding supply and thus there is a need for increased production and productivity.

This slowdown, however, will not have negative bearings on Indian economy as economic expansion absorbs such shake ups and there is no need for any panic, Mr Dhoot added.

UNI

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