Sluggish industrial output may call for stern measures, says Pranab Mukherjee

New Delhi, Apr 12 (ANI): The Union Finance Minister Pranab Mukherjee on Thursday said the industrial output rose at a much slower-than expected 4.1 percent in February, weighed down by a contraction in consumer durables and consumer goods.

Expressing disappointment over the slow growth rate, Mukherjee said: "The IIP (index for industrial production) figures for February 2012 have been released today. The over all growth is estimated at 4.1 percent over February 2011. IIP figures for January 2012 have also been corrected because of which the January 2012 growth has come down from 6.8 to 1.1 percent and that has also reflected the overall annual numbers.

"This is disappointing. The revival in manufacturing in the last quarter of 2011-12 has not materialised as anticipated," said Mukherjee.

Pointing at the uncertainties of the global economy Mukherjee further said that it has affected the investment recovery as well.

"Though, growth in the capital goods for the month of February 2012 over February 2011shows an expansion of 10.6 percent, domestic industry recovery remains frail. The uncertainties from the global economy after the monitory tightening over the past the two years have impacted investment recovery," said Mukherjee.

Mukherjee also said the slow growth rate will have an impact on the monetary policy and it would compel the Reserve Bank of India to take some stern measures.

"The domestic demand growth has also moderated considerably as it is revealed by the negative growth in consumer goods in February 2012. These figures will have the bearing on the monitory policy announcements scheduled for the next week. The government along with the RBI will take the required steps to revive the investment activity in the economy," he added. (ANI)