NEW DELHI: As the economic growth outlook for the present financial year 2012-13 is not just weak but also faces threat from high food prices and sticky inflation, analysts are of the opinion that India will witness considerable rise in manufacturing cost. Since government has clarified that economy will grow at 6.5% during FY13 and inflation will vary around 7.5-8%, manufacturing cost will impact the productivity of other sectors.
While talking to SME News, Dr GS Juneja, chairman, task force on MSME, PHD Chamber of Commerce and Industry, said, “The cost of manufacturing will grow. The sector will face some problems as manufacturing cost will raise the cost of other sectors as well.”
With the considerable rise in diesel prices, it is believed that inflation will go up further in the short term and also the subsidies in FY13 will cross the budget provisions. Many are of the view that Centre should aim to control deficit.
As Centre is mulling to raise its emphasis on arranging revenues and cutting expenditure, the Indian companies should focus more on boosting its presence both domestically and internationally.
While throwing light on the importance of marketing, Juneja also added that India Inc needs to stress on marketing to strengthen their business. It will help in improving the performance and also raise the productivity.
Concerned about the poor industrial growth, Centre stated that it is taking initiatives to redress the situation, said Prime Minister's Economic Advisor C Rangarajan.