New Delhi: Double whammy for India Inc –first, roll back on the FDI in retail and secondly plummeting of Index of Industrial Production (IIP) by 5.1 percent. Terming it bear run in the industrial lane, India Inc on Monday has urged the RBI to reduce interest rates as well as pinned hope on the government to bail them out.

Leading industry chambers of the country have expressed that they did not expect such a sharp decline in the industrial growth.

Rajiv Kumar, secretary general, FICCI said, "The manufacturing growth in India has now reached crisis level and is likely to worsen further. Manufacturing and mining sectors are likely to face further economic downfall. RBI should immediately bring down the interest rates which will enhance consumer durable demand. Also, the Central government should immediately introduce the investment plans to encourage the fiscal growth.”

Another prominent industrial chamber CII’s Director General Chandrajit Banerjee said, “We were not expecting such a sharp decline. The decline in the durable consumer goods industry signifies that there is no investment in the industry which is a matter of concern. This also hints at the fact that the closure of the mines might be a reason of the present economic turmoil in the country.”

Along with CII, Assocham and PHD chamber of commerce have urged the government to take immediate steps in revival of the economy. India Inc has requested the policymakers to take this matter seriously.

According to sources, the government’s present economic condition does not allow a stimulus package to the industries as it granted in the year 2008-09. Finance Minister Pranab Mukherjee has already taken a back seat. The economy has witnessed poor fiscal deficit so far, so in the present year it is not possible for the government to provide an additional rebate.