Press Information Bureau

Government of India

Ministry of Finance

12-September-2012 18:48 IST

The Union Finance Minister Shri P. Chidambaram has said that the Central Government is intensively engaged with industry on the constraints that affect industrial production and will continue its efforts to find practical solutions to the problems.

The Finance Minister Shri Chidambaram was responding to the Quick Estimates of IIP for the month of July, 2012 which were released here today by the Ministry of Statistics and Programme Implementation. He further said that these IIP estimates reveal that the performance of the economy continues to be disappointing. The Finance Minister said that only 8 industry groups out of 22 have shown positive growth. While the General Index for July, 2012 (over July, 2011) is positive at 0.1, it is too early to claim that this is a sign of a turn around, the Minister added.

The Finance Minister Shri Chidambaram said that sector-wise performance reveals a mixed picture. The Finance Minister said that there are gains in some areas (e.g. manufacturing, capital goods) but there are slippages in some other areas (e.g. electricity, consumer goods). There is no clear pattern yet, he added.

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Industrial production constraints: government intensifies engagement with industry to find practical solutions amid mixed sectoral performance. Central Government is intensifying engagement with industry to address constraints impeding industrial production and pursue practical solutions. Quick estimates of the Index of Industrial Production show weak, mixed performance: only a minority of industry groups reported growth and the marginal overall rise is insufficient to signal a sustained turnaround, with gains in manufacturing and capital goods but slippages in electricity and consumer goods.