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Wednesday, January 12, 2011

Mukherjee promises steps to push up factory output

UNION FINANCE Minister Pranab Mukherjee on Wednesday promised to take corrective steps to push up factory output.

He said the decline in industrial growth to 2.7 per cent in November and rising inflation could have an adverse impact on the economy.

"If index of industrial production (IIP) goes down and inflation goes up, it will have an adverse impact, but I am not coming to any premature conclusion. We shall have to look into and take corrective measures so that IIP numbers revive in the remaining four months," said Mukherjee.

"Last time, if you have noticed that in November last year it (IIP) was very high, so base effect is also there, but that is no consolation," he added.

The industrial growth has plunged to 2.7 per cent suggesting a massive deceleration in industrial production. The index of industrial production (IIP) slumped to 2.7 per cent in November as compared to 11.3 per cent in October.

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