IIP disappointing; efforts on to revive growth: FM

IIP disappointing; efforts on to revive growth: FM New Delhi: Expressing disappointment over the industrial production numbers, Finance Minister P Chidambaram Wednesday said the government would continue efforts to find practical solutions to boost output.

"The IIP (Index of Industrial Production) estimates reveal that the performance of the economy continues to be disappointing", he said, while commenting on the industrial production data which revealed a meagre growth of 0.1 percent in July, down from 3.7 percent from the same period a year ago.

The Centre, the Minister said, "is intensively engaged with industry on the constraints that affect industrial production and will continue its efforts to find practical solutions to the problems".

Only 8 industry groups out of 22 have shown positive growth, he said, adding, "while the Index for July, 2012 (over July, 2011) is positive at 0.1 percent, it is too early to claim that this is a sign of a turn around".

The sector-wise performance reveals a mixed picture, he said and observed: "There are gains in some areas but there are slippages in some other areas. There is no clear pattern yet".

According to the IIP data, the manufacturing sector, which constitutes over 75 percent of the index, witnessed a contraction in output by 0.2 percent in July, as against growth of 3.1 percent in the same month last year.

The capital goods production was also down by 5 percent in July against a contraction of 13.7 percent in the same month a year ago.

PTI