Falling industrial output won’t affect growth target: Ahluwalia

NEW DELHI - A sharp fall in India’s industrial output in the last two months is an aberration and the government is confident of achieving 8.5 percent economic growth during the current fiscal, Planning Commission Deputy Chairman Montek Singh Ahluwalia said Sunday.

“We are not going to alter our growth forecasts. We will stick to 8.5 percent growth target and the monthly figure won’t affect it,” Ahluwalia told reporters on the sidelines of the 26th annual meeting of the India Economic Summit, co-organised by the World Economic Forum and the Confederation of Indian Industry here.

The Index of Industrial Production (IIP) growth slowed to 6.9 percent in August and declined further to 4.4 percent in September from 15.2 percent in July.

Ahluwalia said a sharp decline in industrial output during August and September was partly because of base effect. “Whatever may be the reason but the figure is disappointing and we are examining it.”

He said because of its sensible policy framework, India has emerged as the second fastest growing economy in the world among major countries.

“The totality of policy affect outcome. I think in the past 6-7 years we have remarkable achievements.”

The Indian economy grew 8.8 percent in the first half of fiscal 2010-11.

Ahluwalia said growth might fluctuate in the coming quarters but the annual growth was likely to remain nearly 8.5 percent.