Corrective steps to push up industrial production:FM

Posted By: Pti
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New Delhi, Jan 12 (PTI) Finance Minister Pranab Mukherjeetoday said deceleration in industrial growth to 2.7 per centin November and high inflation could have an adverse impact onthe economy and promised to take corrective steps to push upfactory output.

"If IIP goes down and inflation goes up, it will have anadverse impact, but I am not coming to any prematureconclusion," Mukherjee told reporters here.

"We shall have to look into and take corrective measuresso that IIP numbers revive in the remaining four months," hesaid.

Even though part of the deceleration in growth may bebecause of high base effect of 11.3 per cent in November lastyear, the Finance Minister refused to take it as aconsolation.

"Last time, if you have noticed that in november lastyear it(IIP) was very high, so base effect is also there, butthat is no consolation," he said.

Inflation is expected to be higher in December than7.48 per cent in November, since food inflation has surged upto 18.32 per cent during the week ended December 25.

In the previous two weeks also, food inflation was indouble digits while standing at 9.46 per cent for the weekended December 4.

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