Manufacturing sector to be sluggish in Q3 : FICCI

KOLKATA: India's manufacturing sector will remain sluggish in the quarter to December due to costlier credit amid Reserve Bank of India's tight monetary policy, industry body FICCI has said in a report released on Monday.

"This low or subdued growth is supported primarily by some improvement on export front," FICCI president Naina Lal Kidwai said after a national executive committee meeting here. "However, we are seeing rising concerns over the cost of credit by the manufacturers as compared to previous surveys."

According to Ficci's survey, manufacturers are paying 8-16% annual interest, with an average rate of 12%.