IIP report disappointing, taking measures to kickstart economy: Pranab Mukherjee

Measure by the Index of Industrial Production (IIP), the government published report on Tuesday, data showed that India’s Industrial production growth rate increase just at margin of 0.1 per cent in April, enlighten the national rapidly decreased economic.

Last April, the Industrial output was 5.3 per cent that is much hike than this current record. The manufacturing sector, covering 75% of the index, grew barely 0.1 per cent, according to the official data.

All show much pressure over the RBI that may cut Cash Reserve Ratio (CRR) by 1 per cent at its mid-quarterly review on June 18 by that liquidate amount reserved with central bank, source said the central bank also is expected to cut interest rates next week.

Being disappointed over slow down numbers of industrial growth rate in April, Union finance Minister Pranab Mukherjee today told reporters that the government would take crucial steps to give positive signals that restart economy that encourage performance of public sector banks by allowing investment in infrastructure debt funds.

“I am disappointed. Industry has not yet picked up. Negative sentiments are there… We have to take steps to give positive signals (to the industry)”, Mukherejee told reporters.

To make negative slope to positive, the government promised to initialize more long term investment raising the cash flows.

However, much disappointment has shown from the record of capital goods that declined by 16.3 per cent, while relief in mining output by up 3.1 per cent. The performance of consumer goods production is also better having a growth of 5.2 per cent more as compared to last year.

Over all reports showed that just 12 out of 22 industry groups performed positive growth during April which is a big worried fact for scope of high inflation and interest rates.

It is the first time in history that so much badly the national economic growth hit, major cause of the euro zone debt crisis that on Asia’s third-biggest economy.

Though Standard & Poor’s rating agency yesterday alarmed that at current, the country is far away from liberalisation that raises its chances to become the first of the BRICS nations that lose its investment grade credit rating.

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