Industrial growth indicates strong recovery: Pranab Mukherjee

New Delhi: Describing 6.8 percent industrial growth in January as an indication of strong recovery, Finance Minister Pranab Mukherjee today said efforts will have to be made for promoting mining, capital goods and

consumer durables sectors.

“It (Index of Industrial Production-IIP) is 6.8 per in January. There is strong recovery in the backdrop of last December’s figure where IIP grew by 2.8 per cent”, he said, while commenting on the latest data of industrial production.

[caption id=“attachment_241234” align=“alignleft” width=“380” caption=“According to the data, industrial production grew 6.8 percent in January, mainly due to improvement in the manufacturing sector.”] [/caption]

The sectoral analysis of the data, Mukherjee said, “show there is not much progress in capital goods, which is a matter of concern. Consumer non-durable had contributed substantially in this growth, but not so much in consumer durables. In course of time, efforts will have to be made to build up these

areas.”

The mining sector, he added, too has not done well and has reported contraction of 2.7 percent in January.However, he said, “There is strong revival in growth rate of manufacturing sector at 8.5 percent in January 2012.”

According to the data, industrial production grew 6.8 percent in January, mainly due to improvement in the manufacturing sector.

Output of the sector, which constitutes over 75 percent of the index, rose 8.5 per cent in January, compared to 8.1 percent in the same month last year.

The capital goods sector, however, witnessed a contraction of 1.5 percent, as against a growth of 5.3 percent in the same month last year. Mining output too contracted by 2.7 percent in January, as against 1.7 per cent growth in

the year ago period.

PTI