New Delhi: Finance minister Pranab Mukherjee today expressed disappointment at the slippage in industrial production, but asserted that the economy was on the recovery path, led by increased investments and rise in demand, reports PTI.
"(The trend is) a little disappointing. Let us see how it fares in annualised terms," Mr Mukherjee said while reacting to the sharp decline in the industrial growth, IIP, which fell to a 15-month low of 5.6% in August.
Mr Mukherjee, however, said that he hoped the economic recovery process would continue as there is strong demand for industrial goods.
"As you all know, Indian economy is on the path of robust growth, led by increased investment and capital inflows, stronger industrial output and rising aggregate demand," he said.
The Index of Industrial Production (IIP) nosedived to 5.6% in August, from 10.6% a year ago, mainly on account of decline in output of capital goods, a sector which reflects fresh investments in the economy.
The previous low of IIP number was recorded at 2.7% in May 2009.
The government is expecting the economy to grow by 8.5% in the current fiscal, higher than 7.4% in 2009-10. In the first quarter (April-June) of current fiscal, the economy grew by 8.8%.
Following the global financial meltdown, the gross domestic product (GDP) growth rate slipped to 6.7% in 2008-09, from over 9% in the preceding three years.