Anant concerned about declining industrial growth

Chief Statistician T C A Anant today expressed concern over slow industrial growth for two consecutive months of August and September.

"I am disappointed by these (IIP) numbers. We have got poor numbers for two consecutive months--August and September. As the Finance Minister has said, I think we need to take careful look", he said.

The Chief Statistician, however, said that the country would end the fiscal with double-digit factory output expansion and 8.5 per cent GDP growth.

"I expect overall Index of Industrial Production growth this fiscal to close at 10 per cent because of the onset of festive season and agriculture produce hitting market in November, December and January," Anant told reporters here.

He elaborated there was a tendency for industrial activity to pick up with the start of the festive season and rise in purchasing power with farmers selling their produce in these three months.

The industrial growth has slowed down to 4.4 per cent in September, that's about half of 8.2 per cent in same month last year. Similarly, the IIP growth for August was 6.91 per cent against 10.50 per cent in the year-ago period.

However, industrial growth for the first six months of this fiscal stood at 10.2 per cent against 6.3 per cent a year ago.

Perplexed by this phenomenon, Finance Minister Pranab Mukherjee said, "We will have to analyse why that is happening. And after that considered comments can be made. But it's a matter of concern."

On the GDP growth this fiscal, Anant said, "It seems agriculture growth would be much better than last year. I will still be comfortable with projection of 8.5 per cent (GDP growth) which is our original estimate."

About high inflation numbers, which had rocked the last two Parliament sessions, he said, "It is coming down and it would be closer to per cent by December."