The dismal numbers for industrial growth for July were indeed disappointing, showing that there is no pickup in consumer durables, non-durables and capital goods. The fall in capital goods production is particularly worrying as it indicates lack of investment. While business sentiment is high with hopes that the Modi government will get the economy off the ground, these are somehow not translated into a rise in manufacturing output. There is a limit how much hope can do. Besides, crude, food and coal prices are falling globally, which should help industry. Ficci chief Sidharth Birla perhaps summed up the situation crisply, saying industry awaited a positive investment environment, and a robust decision-making mechanism to improve ease of doing business. This shows that despite the flurry of activity, decisions are not being taken as fast as they should be, and in areas where they are most needed. Union finance minister Arun Jaitley should perhaps look at the micro level to see where things are going wrong.
The fall in retail inflation rates was good news, though food inflation, the bugbear of the inflation syndrome, is still high. It is disappointing the government has not been able to tackle something as simple as the pulses and milk problems.
