IIP growth may affect GDP: Pranab
India`s economic growth fell to 18-month low at 7.7 per cent in the April-June period (Q1). The government expects the country to grow by around 8.5 per cent during 2011-12. As per the official data released today, the IIP growth during the April-August is 5.6 per cent, as against 8.7 per cent in the corresponding period of 2010-11. However, July IIP growth has been revised upwards from 3.3 per cent to 3.8 per cent.
"The silver lining is that IIP has improved from July figure… But compared to corresponding period of previous year, it is quite low," Mukherjee added. Meanwhile, economic affairs secretary R Gopalan said that the slowdown in the IIP numbers is a matter of concern but expressed confidence that the figures would improve from here."It is a cause of concern. But as we go along, if you see the previous year, always second half IIP numbers have been good," he said.