5% industrial growth only by next financial year: Rangarajan

The sluggish industrial growth may continue its run till the next year as the government expect more than 5% growth in the sector by 2014-15.

"Once a pickup in industrial growth happens, moving ahead next year we should find the growth rate going back to 5-6 per cent", C Rangarajan, Chairmain of Prime Minister's Economic Advisory Council said on the sidelines of CII's 3rd Finance and Investment Summit here.

He said that he expect the industrial growth in the second half higher than that in the first half and could be more than 3%. "The impact of the various measures taken by the government will be felt in the second half", he said.

On inflation, he said he expect the rate to come down. "This has been caused mainly from food articles which will ease as a result of impact of good monsoon", Rangarajan added.

He said he sticks to the 6% target estimate of wholesale price inflation by year-end.

The factory output expanded by mere 2% in September despite hopes of a bounce back, according to data released yesterday. Data on inflation showed that Consumer Price Index based inflation went up to 10.09% in October.