FinMin 'happy' with IIP pick-up, hopes growth will cross 6%

Upbeat over pick-up in industrial growth, Finance Ministry today expressed confidence that with the current trend continuing, the economic growth rate would cross 6% in 2013-14.

"We are happy to see IIP numbers. This is exactly the trend we are hoping. If (the trend) continues, inflation comes down and growth begins to pick up, I am quite confident that growth in current fiscal would cross the 6% mark," Economic Affairs Secretary Arvind Mayaram said.

Showing signs of recovery, the industrial growth has bounced back to 2.5% in March on better performance of manufacturing and power sectors coupled with higher output of capital goods.

Industrial production had seen a contraction of 2.8% in March last year.

For the fiscal 2012-13, the index of industrial production (IIP) recorded a growth of just one% compared to a growth of 2.9% in previous fiscal.

The manufacturing sector, which constitutes over 75% of the index, grew by 3.2% in March against a decline in output by 3.6% in the same month of 2012.

However in 2012-13, the growth in output of the key sector remained low at 1.2% against 3% in 2011-12.

The economic growth during 2012-13 slipped to decade's low of 5%. In the current fiscal, the growth is expected to pick up and as per the Economic Survey it is likely to be in the range of 6.1 to 6.7%.