6.8% Jan IIP indicates strong recovery: FM

Describing 6.8% 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%", he said, while commenting on the latest data of industrial production.

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% in January.

However, he said, "There is strong revival in growth rate of manufacturing sector at 8.5% in January 2012."

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

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

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