New Delhi, Aug 11 (PTI) With industrial output showing contraction for the first time in the current fiscal, India Inc today called for more effective, short-term revival measures coupled with reforms at the state level and faster development of infrastructure to boost competitiveness.

“Considering the need for creating conducive environment for investments, capacity utilisation and augmentation of industrial production on priority basis, the government must initiate more effective short-term revival measures,” Assocham Secretary General D S Rawat said.

Industrial output entered the negative territory in June, contracting by 0.1 per cent, mainly due to decline in manufacturing and capital goods sectors.

“The fall in manufacturing which is more broad based this time is a cause for concern and underlines the need for more reforms, especially at the state level. This is important to improve the investment climate further,” Ficci Secretary General A Didar Singh said.

“Besides reforms at the state level, we need to ensure faster development of our infrastructure, which is a major enabler of growth and instrumental in reducing the cost of doing business in the country to make our manufacturing competitive,” he added.

Besides, segments like mining, power generation, infrastructure and construction goods and consumer durables recorded poor performance.

Factory output, measured in terms of index of industrial production (IIP), grew 8 per cent in June 2016, according to the data released by the Central Statistics Office today.

On a quarterly basis, factory output growth during April-June slowed down to 2 per cent from 7.1 per cent in the corresponding period last year.

This is the first time in the current fiscal that the industrial output has shown a decline. IIP grew by 3.4 per cent in April and 2.8 per cent May, according to the revised estimates released today.

This is published unedited from the PTI feed.