‘5-month low August factory output growth not worrying’
13 Oct 2014 3:54 AM IST
The latest Index of Industrial Production (IIP) data, which logged in a five-month low growth rate for August — is not worrisome as some other sectors are showing signs of expansion, Minister of State for Commerce and Industry Nirmala Sitharaman said on Saturday. ‘The new Government in the last few months has (taken) every possible measure to revive confidence like ease of doing business and better regulations,’ Sitharaman told reporters here on Saturday.
She said that had it not been the case, global rating agencies like Standard & Poor’s would not have given a stable outlook on India. ‘There are definite signs of improvement. The automobile and some core sectors are doing well,’ the minister said, adding that the IIP data would have no impact on second quarter gross domestic product (GDP) growth.
Industrial production growth as measured by Index of Industrial Production slowed down to a five-month low of 0.4 per cent in August mainly due to contraction in manufacturing output and lower offtake of consumer goods.
Sitharaman also said that the Commerce Ministry would extend help in every possible way to address the woes of the jute industry. ‘Although jute is not within the jurisdiction of my ministry, it is under the textiles ministry. But my ministry will help in its own way,’ she told reporters after a closed-door meeting on the jute industry here where Minister of State for Textiles Santosh Gangwar was also present.
The meeting, convened by the National Jute Board, was attended by all the stakeholders like the mill owners, trade union representatives and various government agencies associated with the trade.
Issues like minimum support price (MSP) for raw jute purchase were visited in the meet, she said. Sitharaman said that with the only assured market being the Jute Mandatory Packaging Order, there was a need for diversification into other products as well. She said that Indian jute was losing market to Bangladesh.
She said that had it not been the case, global rating agencies like Standard & Poor’s would not have given a stable outlook on India. ‘There are definite signs of improvement. The automobile and some core sectors are doing well,’ the minister said, adding that the IIP data would have no impact on second quarter gross domestic product (GDP) growth.
Industrial production growth as measured by Index of Industrial Production slowed down to a five-month low of 0.4 per cent in August mainly due to contraction in manufacturing output and lower offtake of consumer goods.
Sitharaman also said that the Commerce Ministry would extend help in every possible way to address the woes of the jute industry. ‘Although jute is not within the jurisdiction of my ministry, it is under the textiles ministry. But my ministry will help in its own way,’ she told reporters after a closed-door meeting on the jute industry here where Minister of State for Textiles Santosh Gangwar was also present.
The meeting, convened by the National Jute Board, was attended by all the stakeholders like the mill owners, trade union representatives and various government agencies associated with the trade.
Issues like minimum support price (MSP) for raw jute purchase were visited in the meet, she said. Sitharaman said that with the only assured market being the Jute Mandatory Packaging Order, there was a need for diversification into other products as well. She said that Indian jute was losing market to Bangladesh.
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