Montek not worried over Nov IIP dip, hopeful of 8.5 pc growth

NEW DELHI: Notwithstanding Sharp decline in industrial growth in November, the Plan panel today exuded confidence that the country would end the current fiscal with targeted GDP growth of over 8.5 per cent.

"I am not concerned about low November number. There is month to month volatility. We are on track as far as GDP growth is concerned," Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters here.

Industrial growth plunged to 2.7 per cent in November 2010 against 11.3 per cent in the same period a year-ago.

In October 2010, the Index of Industrial Production ( IIP) had expanded by 11.29 per cent.

The industrial growth during April-November of this fiscal stood at 9.5 per cent, against 7.4 per cent in the corresponding period last year.

Ahluwalia said, "The cumulative (industrial growth) number (April-November) is about 9.5 per cent, that is very reasonable considering the overall (GDP) growth (target) we have."

About ending the fiscal with over 10 per cent industrial growth this fiscal, he said, "I hope that we would get 10 per cent industrial growth with 8.5 per cent or little higher GDP growth in 2010-11."

About the wild swings in monthly industrial growth data, he said, "In the data for week or month, there will always be more volatility than for longer period."

The industrial production growth which crossed 15 per cent in July, dipped to 6.9 per cent in August and further to 4.4 per cent in September.