FM hopeful of IIP revival in coming months

Describing the 1.8 per centindustrial output growth in December as "disappointing", India'sFinance Minister Pranab Mukherjee on Friday expressed hope that the figures wouldshow some improvement in the coming months.

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

Factory output growth, as measured by the Index ofIndustrial 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 EconomicAdvisory Council Chairman C Rangarajan said the numbers are disappointing andadded that investment sentiment would revive in the next three months.

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

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

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