October IIP will show growth revival: Montek

Projecting economic revival in the second half of the current fiscal, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Monday said the October data for industrial production will show recovery.

"Finance Minister has said that second half of this fiscal (would register higher economic growth). That means beginning of this month onwards, when the data for this period becomes available, you will begin to see revival in the growth process including in the index of industrial production," he said.

Asked as to when would one see the growth revival, he replied, "The IIP data for October will be available in December."

After recording modest growth in July, industrial output again slowed down sharply to 0.6 per cent in August mainly on account of a contraction in manufacturing and mining.

Factory output, which showed some signs of recovery after recording a growth of 2.8 per cent in July, remained almost flat year-on-year because of a slump in production of consumer goods and durables.

Reeling under the impact of slowdown, Indian economy grew by 5 per cent in 2012-13, the first year of the 12th Plan. The economic growth is expected to be in the same region this year. The first quarter (April-June) economic growth in this fiscal has slipped to 4.4 per cent from 4.8 per cent the previous January-March quarter.

About the impact of good monsoon on economy, Ahluwalia said: "Agriculture growth in the last fiscal was 2.9 per cent.

If we get 5 per cent agriculture growth this fiscal then...the 2.1 per cent higher agriculture growth would translate into 0.4 per cent more economic growth.

"Moreover the agriculture income increased the demand for manufactured goods. I think that good agriculture production this year would have very positive affect on overall economy."

Customers walk near the entrance of an IKEA store in Dubai January 22, 2013.