India may see just 6% growth in FY'12: Rangarajan

New Delhi: Prime Minister’s economic advisory panel chief C Rangarajan has described the dip in factory output in September as “disappointing” and said industry may grow by just 6 percent in the current fiscal, as against the earlier projection of 7 percent.

“IIP for September is bad, but I do see a pick-up by the end of March. We had originally expected overall IIP at 7 percent for the fiscal, but now it could be 6 percent,” Rangarajan, the chairman of the Prime Minister’s Economic

Advisory Council (PMEAC), told PTI today.

[caption id=“attachment_129095” align=“alignleft” width=“380” caption=“C Rangarajan heads the PMEAC. Reuters”]  [/caption]

The index of industrial production (IIP) slipped to a two-year low of 1.9 percent during September, mainly on account of poor performance of the manufacturing and mining sectors.

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“The IIP numbers are disappointing. It is well below our expectation,” he said, adding, “… To some extent, the decline is contributed by negative growth in the mining sector.”

Mining output declined by 5.6 percent in September this year, as against a growth of 4.3 percent in the same month last year.

During the first half of 2011-12, mining output dipped by 1 percent, as against a growth of 7.2 percent a year ago.

IIP growth during the April-September period moderated to 5 percent from 8.2 percent in the corresponding period last fiscal.

The government, Rangarajan said, “should ensure that the fall in coal production is corrected and also investment in infrastructure, especially, roads, rail and power.”

PTI