Fin Min 'happy' with IIP pick-up, hopes growth will cross 6%
New Delhi: Upbeat over pick-up in industrial growth, Finance Ministry on Friday expressed confidence that with the current trend continuing, the economic growth rate would cross 6 percent in 2013-14.
"We are happy to see IIP numbers. This is exactly the trend we are hoping. If (the trend) continues, inflation comes down and growth begins to pick up, I am quite confident that growth in current fiscal would cross the 6 per cent mark," Economic Affairs Secretary Arvind Mayaram said.
Showing signs of recovery, the industrial growth has bounced back to 2.5 percent in March on better performance of manufacturing and power sectors coupled with higher output of capital goods.
Industrial production had seen a contraction of 2.8 percent in March last year.
For the fiscal 2012-13, the index of industrial production (IIP) recorded a growth of just one percent compared to a growth of 2.9 percent in previous fiscal.
The manufacturing sector, which constitutes over 75 percent of the index, grew by 3.2 percent in March against a decline in output by 3.6 percent in the same month of 2012.
However in 2012-13, the growth in output of the key sector remained low at 1.2 percent against 3 percent in 2011-12.
The economic growth during 2012-13 slipped to decade's low of 5 percent. In the current fiscal, the growth is expected to pick up and as per the Economic Survey it is likely to be in the range of 6.1 to 6.7 percent.