New Delhi: Concerned over the decreasing pace of economy amidst global financial crisis, the Union government has now been eying the industrial sector for relief. Aimed to boost up the pace of economic activities, Commerce and Industry Minister Anand Sharma has called a meeting of major industrialists and representatives of various business chambers on November 24.

It is believed, issue of liberalization of Foreign Direct Investment (FDI) will be discussed at priority in the meeting to solve the financial crisis faced by the business houses as in case of Vijay Mallya owned Kingfisher Airlines.

Affected by the global economic crisis, the Indian economy is also witnessing sluggish growth as a permanent decline in production has been prevailing since the onset of the current fiscal which may simultaneously lead to reduction in the country’s Gross Domestic Product (GDP).

The biggest de-motivator for the government is the manufacturing sector which has registered a depressing growth rate of 2.1 percent since September. While the government has targeted industrial growth rate at 7.1 percent, the prevailing conditions may make it an impossible target.

However, a similar meeting was organized under the Chairmanship of Finance Minister Pranab Mukherjee on August 1 this year but no fruitful solutions could be achieved.

Mukherjee had assured concrete steps to speed up the improvements in the governmental policies. But issues of increasing the limit of direct foreign investment in insurance sector and allowing FDI in multi-brand retail are still stuck in a deadlock. Moreover, the new National Manufacturing Policy has also proved to be a dampener.

Adding more to the agony, efforts of the Reserve Bank of India in tapping inflation have also fallen flat raising further troubles for the industrial sector. In spite of increasing interest rates since April 2010, the inflation rate refuses to fall below the two digit mark. While, the industrial sector has been asking the government to stop the escalating interest rates, costlier loans have also discouraged their expansion.

JPN/Bureau