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FM hopeful of IIP revival in coming months

Describing the 1.8 per cent industrial output growth in December as "disappointing", India's Finance Minister Pranab Mukherjee on Friday expressed hope that the figures would show some improvement in the coming months.

twitter-logo PTI   New Delhi     Last Updated: February 10, 2012  | 17:55 IST

Describing the 1.8 per cent industrial output growth in December as "disappointing", India's Finance Minister Pranab Mukherjee on Friday expressed hope that the figures would show some improvement in the coming months.

"IIP is disappointing... I hope from the next couple of months it will start improving," Mukherjee said.

Factory output growth, as measured by the Index of Industrial Production (IIP), fell sharply to 1.8 per cent in December 2011, from 8.1 per cent a year ago, mainly on account of contraction in mining, capital goods and poor growth in manufacturing sector.

Expressing similar opinion, Prime Minister's Economic Advisory Council Chairman C Rangarajan said the numbers are disappointing and added that investment sentiment would revive in the next three months.

"There are indications of revival in factory output in January-March quarter as mining sector would show improvement as coal output is expected to rise," Rangarajan said.

He said the GDP growth for the current fiscal is likely to be "a shade better" than 6.9 per cent estimated by the Central Statistical Organisation (CSO).

He said the growth for the next fiscal is likely to be around 7.5 per cent.

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