A report by State Bank of India has said that the manufacturing activity dipped to a one-year low in January.
Indicating ‘moderation in economic activity’ thee yearly SBI Composite Index fell below the 50 mark to 47.3 in January — its lowest level in the past one year.
News agency PTI quoted SBI report saying that construction, steel and textile were “some of the sectors identified as clear headwinds and thus need to be addressed head-on.”
It also revealed that 42 per cent of the tenders floated during the last 12 months were yet to be awarded adding that “a concerted and faster execution going forward in the construction sector.”
Construction activity in real estate segment was low in January, with players focussing on stabilising their finances and adjusting to the new market situation.
“In the infrastructure segment, the government supported projects are keeping demand up, but the significant delays in implementation remained concern,” SBI report was quoted by the PTI.
Regarding the textile sector, the report said the government should think afresh to skew its existing TUF (Technology Upgradation Fund) allocation in favour of technical textiles to promote exports and bolster the Make in India campaign.
“One of the several steps the government can take is to push for ‘Eastern Dedicated Freight Corridor’ to alleviate some macro issues relating to nearness to markets and ports for exports,” it addeduo