HindustanTimes Mon,22 Dec 2014

IIP dip due to statistical reasons, improvement imminent: Montek

PTI  New Delhi, January 11, 2013
First Published: 16:05 IST(11/1/2013) | Last Updated: 16:06 IST(11/1/2013)

Attributing decline in industrial output in November to statistical reasons, Planning Commission deputy chairman Montek Singh Ahluwalia on Friday said the growth has already bottomed out and efforts taken by the government will yield fruits in coming month.


"This data does not contradict the proposition that the economy has bottomed out. It now needs to move need to wait to see what December is like," Ahluwalia told reporters in New Delhi.

He was commenting on the Index of Industrial Production (IIP) data which showed that factory output in November contracted by 0.1% compared to 6% growth in the same month in 2011. During the April-November period of this fiscal, the IIP recorded a dismal growth of 1%, down from 3.8%  in the corresponding period a year ago.

"In this particular case, we have to keep in mind that the base effect has operated in two different way," Ahluwalia said, adding the decline "is not a matter of surprise."

On IIP decline in November, he said, "This year it (Diwali) was in November so what you have seen is a dip in November. This dip in (IPP in November) has to be actually compared to last year’s growth of 6 per cent."

Alhuwalia further said: "I have said this many times, it's not a very reliable estimate of the monthly growth rate..."

He expressed the hope that steps taken by government have given clear signals of growth in the last several months and would help in improving investment climate.

Moreover, he said the results of the government's decision to remove major bottlenecks for big infrastructure projects and improve availability of coal for the power sector would become manifest soon.

more from Business

Sensex extends gains, up 87 points in early trade

The benchmark BSE Sensex gained over 87 points in early trade on Monday on mild buying by funds and investors amid robust global trends coupled with positive domestic sentiments after the introduction of GST Bill in the Lok Sabha on Friday.
Most Popular
Copyright © 2014 HT Media Limited. All Rights Reserved