The current slowdown in the industry is being attrributed primarily to government policies. Companies and industrial representatives say that the delays in government infrastructural projects have hit the industrial growth.
Companies like Universal Construction Machinery and Equipment Ltd (UCMEL) are feeling the pinch of slowdown due to sluggish sales in construction machinery equipment segment.
UCMEL Managing Director Ranjit More said,The sentiment is low in the infrastructure industry. Due to this,there is an impact on the sales. The slow growth in power sector due to high cost of coal import has also hit the industry. In fact,heavy import duty on coal is affecting the industry and leading to volatility in currency market.
Real estate developers say authorities are taking longer to clear projects. Also,property transactions are heavily taxed. They said that if the government lowers taxes,it could help in boosting the demand.
Director of B U Bhandari Landmarks,Anuj Bhandari,said that the demand in the real-estate industry will further pick up in case the government creates conducive conditions.
Residential sector in the city is doing well but it requires the government to announce measures that will boost the industry, Bhandari added.
Mathew Job,Manging Director of Racold,a water heater company,said last year the growth in sales of the company was 25 per cent and it is likely to remain the same this year due to current market conditions.
Abhay Patil,Vice-President,talent management,Harbinger Group,said that the company could weather the current economic downturn as it works with startups and runs a diversified business.
There may be problems for large companies but we are insulated from slowdown, he said.
The IT industry,however,is facing a situation where companies are finding it difficult to take major decisions on expansion,he said.