IIP data to have bearing on monetary policy: Pranab

Sharp downward revision in January will also play a role

The decline in industrial output growth in February and the sharp downward revision in January would have a bearing on the monetary policy review next week, Finance Minister Pranab Mukherjee said on Thursday.

Mukherjee said the finance ministry and the Reserve Bank of India would work together to take steps to revive investment climate in the economy.

The industrial production grew at a slower-than-expected pace of 4.1% in February, weighed down by a contraction in consumer durables and consumer goods, while January's growth was sharply revised downward to 1.14% from 6.8%.

Mukherjee's comments add weight to growing clamour for a rate cut when the RBI meets on April 17.