Montek Ahluwalia not worried over decline in industrial production

NEW DELHI - Planning Commission Deputy Chairman Montek Singh Ahluwalia on Wednesday said the country would end the current fiscal with targeted GDP growth of over 8.5 per cent, and added that the decline in industrial growth to 2.7 per cent in November is not a reason to worry.

“I am not concerned about low November number. There is month-to-month volatility. We are on track as far as GDP growth is concerned,” said Ahluwalia.

Further commenting on the decline in industrial production, he said: “The cumulative (industrial growth) number (April-November) is about 9.5 per cent, that is very reasonable considering the overall (GDP) growth (target) we have.”

“I hope that we would get 10 per cent industrial growth with 8.5 per cent or little higher GDP growth in 2010-11,” he added.

Earlier today, Union Finance Minister Pranab Mukherjee promising to take corrective steps to push up factory output, said the decline in industrial growth to 2.7 per cent in November and rising inflation could have an adverse impact on the economy.

“If index of industrial production (IIP) goes down and inflation goes up, it will have an adverse impact, but I am not coming to any premature conclusion. We shall have to look into and take corrective measures so that IIP numbers revive in the remaining four months,” said Mukherjee.

“Last time, if you have noticed that in November last year it (IIP) was very high, so base effect is also there, but that is no consolation,” he added.

The industrial growth has plunged to 2.7 per cent suggesting a massive deceleration in industrial production.

The index of industrial production (IIP) slumped to 2.7 per cent in November as compared to 11.3 per cent in October.

According to reports, this is the slowest growth in IIP since May 2009. (ANI)