Subdued industrial production growth not worrisome

Written by fe Bureau | Kolkata | Updated: Oct 12 2014, 08:22am hrs
Stating that the government is not worried about the subdued industrial production growth during August, commerce and industry minister Nirmala Sitharaman on Saturday said the lower factory output growth would not have an impact on the countrys GDP rate in the second quarter this fiscal as core sectors are already looking upward.

The decline probably is marginally coming down, but it is time for to go up too. So, I dont think it is going to hit the GDP growth at all because sooner you will see concrete and substantial increases in many other sectors, industrial sector too, Sitharaman said.

Indias industrial production growth remained subdued at five-month low of 0.4% in the month of August. Some analysts felt that the subdued factory output growth may have an impact on GDP growth rate during the second quarter of FY15.

The Union minister, however, said the automotive sector had posted very good revival and core sectors were also looking upward. So you will get it in the figures too, she added.

Asked when could the industrial sector witness a revival, Sitharaman said she would not put a definite timeframe for the rebound, but the government had done everything possible to improve business sentiments.

The minister said global rating agencies like Standard & Poors would not have given a stable outlook on India had a concrete economic progress not been there.

On the existing Free Trade Agreement, Sitharaman said the exercise of reviewing the agreements with the partner countries, in order to ensure that the domestic manufacturers and exporters got better benefit, had almost come to an end. We want better utilisations of FTAs so that our manufacturers and exporters get benefit from it.We started the review of SEZ and review of FTAs. We almost came to an end of this exercise, she averred.

She said in some existing FTAs there was a feeling that the agreements had benefited the partner countries rather than India. On that, specifically, I want to tell you that if there are such perceptions, we are looking at the FTAs, wherever we have some indications on that, she said.