The macro-economic numbers pertaining to the Indian economy indicates further slowdown of the economy. There may be a steep fall in the growth rate in the coming months. Decline in agriculture and industrial growth rate may further slide the economic growth. The growth rate of 7.6 per cent has registered in the September quarter of this year from the peak level of 9.3 per cent in September 2007. The reserve bank and noted rating agencies has forecasted further decline in the growth rate due to the impact of global slowdown.

The country witnessed the highest ever decline in the IIP (Index of Industrial Production) numbers which indicates the adverse situation of the Indian corporate sector. IIP growth rate was 12.2 per cent in October 2007 which posted a negative growth rate at 0.4 per cent for October. The impact of the global slowdown would be witnessed in the coming times as the present data of October also includes the festival season. Companies are reporting 26 per cent decline in the operating profits due to sluggish demand.

Indian auto sector, reality sector and manufacturing segment are also facing the heat of global slowdown due to low demand. The recent excise duty cut can ease the situation by increasing consumption which is a strong pillar of the Indian growth story. However, the commercial vehicle segment is unlikely to regain its past glamour due to the slow down in freight and goods movement.

Government should definitely take some concrete monetary steps to maintain the growth story of the nation.