Millennium Post

Need to promote critical sectors: FM

June industrial output as disappointing, finance minister P Chidambaram on Thursday said there is a need to promote critical sectors to boost growth.

‘The Quick Estimates of IIP for the month of June are disappointing. It is important to focus on the critical sectors, remove bottlenecks and give a fillip to production,’ Chidambaram said.

Industrial production has declined by 1.8 per cent in June from a 9.5 per cent growth in the same period a year ago period mainly due to poor show by manufacturing and capital goods sectors, ‘The production will revive if there are new investments in the demand creating industries,’ Chidambaram said.

As per the official data, industrial output in the April- June quarter too contracted by 0.1 per cent this fiscal, against a growth of 6.9 per cent in the corresponding period a year ago.

Earlier this week, Chidambaram had stressed on removing the supply side constraints and boost manufacturing and exports.

‘We intend to find practical solutions to the problems that impede higher production or output in the coal, mining, petroleum, power, road transport, railway and port sectors,’ he had said.

The manufacturing sector witnessed a slump in output by a dismal 3.2 per cent in June against a growth of 11.1 per cent in the same month a year ago.
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