the causes of sickness are both internal and external. the major causes are limited financial resources, lack of organisational, financial and management skills and expertise, diversion of funds, diversification / expansion before stabilisation, non - availability of power supply shortage of raw materials, marketing difficulties, delayed and inadequate credit, globalisation and liberalisation of the economy, obsolete technology, inadequate infrastructure, etc. with a view to ensuring that potentially viable sick ssi units are provided with the timely and adequate assistance by all agencies concerned, there are state level inter institutional committees ( sliic ) constituted in each state involving state government, financial institutions, commercial banks and sidbi. ssi associations are also invited to the meetings of this committee. a sub - committee of sliic has also been set up in each state to examine the individual cases referred to it for rehabilitation. to address the incidence of growing sickness in the sector rbi has recently issued a complete set of revised guidelines drawn up on the basis of the recommendations of a working group constituted by it for the purpose. policy initiatives the indian industry remained within an inward oriented policy framework up to the 1990s. with globalisation, liberalization, financial and real sector reforms, the country adopted an outward looking approach. at present, both the industrial sector in general and ssi sector in particular are exposed to international competitive environment. however, the most significant aspect is that india has evolved a sound institutional set up for financing of the ssi sector. new industrial policy was announced as part of the structural reforms in 1991, which eliminated various controls on the industrial sector, provided a greater role for the private sector and encouraged inflow of foreign investment and technology, but also contained specific initiatives for the development of the ssi sector. the pace of de - reservation of ssi items, needs to be accelerated so as to ensure that size does not remain a constraint to higher production, cost - efficiency and technological upgradation. the case for de - reservation of the ssi sector becomes even stronger in the light of the experience of south - east asian economies which indicates that ( a ) their export basket transformed from labour - intensive and relatively low technology products ( textiles, clothing, shoes, toys, etc ) in the 1980s to higher - technology consumer goods and capital - intensive goods ( capital goods and petrochemicals ) in the 1990s and ( b ) production of such consumer goods could be achieved by large - scale final assembly operations coupled with copious out - sourcing to

. the governing council sees it as increasingly likely that inflation will stabilise at its two per cent target over the medium term. in alternative scenarios for the economic and financial impact of the war, which will be published together with the staff projections on our website, economic activity could be dampened significantly by a steeper rise in energy and commodity prices and a more severe drag on trade and sentiment. inflation could be considerably higher in the near term. however, in all scenarios, inflation is still expected to decrease progressively and settle at levels around our two per cent inflation target in 2024. based on our updated assessment and taking into account the uncertain environment, the governing council today revised the purchase schedule for its asset purchase programme ( app ) for the coming months. monthly net purchases under the app will amount to €40 billion in april, €30 billion in may and €20 billion in june. the calibration of net purchases for the third quarter will be data - dependent and reflect our evolving assessment of the outlook. if the incoming data support the expectation that the medium - term inflation outlook will not weaken even after the end of our net asset purchases, the governing council will conclude net purchases under the app in the third quarter. if the medium - term inflation outlook changes and if financing conditions become inconsistent with further progress towards our two per cent target, we stand ready to 1 / 3 bis central bankers'speeches revise our schedule for net asset purchases in terms of size and / or duration. any adjustments to the key ecb interest rates will take place some time after the end of our net purchases under the app and will be gradual. the path for the key ecb interest rates will continue to be determined by the governing council ’ s forward guidance and by its strategic commitment to stabilise inflation at two per cent over the medium term. accordingly, the governing council expects the key ecb interest rates to remain at their present levels until it sees inflation reaching two per cent well ahead of the end of its projection horizon and durably for the rest of the projection horizon, and it judges that realised progress in underlying inflation is sufficiently advanced to be consistent with inflation stabilising at two per cent over the medium term. we also confirmed our other policy measures, as detailed in the press release published at 13 : 45 today. i will now outline in more detail how we see the economy and inflation developing, and will then explain our assessment of financial and monetary conditions. economic activity the economy grew by 5