IIP data dashes revival hopes, Chidambaram disappointed

The industrial output numbers for July came out on Wednesday, adding to an already existing sense of despondency about the growth projections in the economy. Though the latest numbers reversed the trend of downward growth from June, it grew only marginally at 0.1 per cent in July, also down from 3.7 per cent from the same period a year ago.

The Index of Industrial Production (IIP) growth in July compares better than the 1.8 per cent contraction seen in June. 

Expressing disappointment over these numbers, the finance minister P Chidambaram said that the government would continue efforts to find practical solutions to boost output. 'The IIP estimates reveal that the performance of the economy continues to be disappointing, he said.

The centre, the minister said, 'is intensively engaged with industry on the constraints that affect industrial production and will continue its efforts to find practical solutions to the problems'.

Only eight industry groups out of 22 have shown positive growth, he said, adding, 'while the Index for July 2012 [over July 2011] is positive at 0.1 per cent, it is too early to claim that this is a sign of a turnaround'.

The sector-wise performance reveals a mixed picture, he said and observed: 'There are gains in some areas but there are slippages in some other areas. There is no clear pattern yet'.