When the interest rates are high, the manufacturing industries slow down capital investment to avoid bearing high cost of investments and hence lead to flattening of long term growth.
When the interest rates are low, the manufacturing industries intensify capital investments, leading to higher levels of automation and hence leading to increased levels of unemployment in the long term.
Off course, it is much more complicated than that but what is the right interest rate to have?
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Avishek Gupta
I help drive sustainable development by financing the growth of professionally managed entrepreneurial ventures that solve key social and environmental problems. Having financed and observed over 250 ventures from close quarters, I understand the challenges that such ventures face in scaling up. I have the knowledge of process, financing and technology solutions that can help overcome those challenges. Separately, I have the experience of building businesses that finance early/growth stage companies. Most recently, I was involved with growing Caspian Debt to a full-fledged operating company from an initial 3 member fund investments team.
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Avishek Gupta 
In my view, investment decisions of manufacturing industries depends more on market sentiments and demand predictions than rate, assembly lines never should remain idle, whether it is low or high rate of interest. Assembly lines can remain idle when products are not selling, that’s the biggest loss factor. Thats why we are seeing lots of schemes, offers and product push by the automobile companies now a days. It is better option for them to produce cars/vehicles and sell them at much lesser margin than keep the plant (read investment) idle