IIP figures disappointing: Pranab Mukherjee

NEW DELHI: Finance minister Pranab Mukherjee said “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)”, Expressing disappointment over dismal 0.1 per cent industrial growth rate in April, on tuesday to the reporters.

Industrial production growth rate slowed down, due to contraction in capital goods and dip in manufacturing output, reflecting the sluggish state of the economy.The IIP was negative in March, which declined to 3.2 per cent.He also said thatthe government cannot take comfort from the fact the industrial output turned positive in April from negative a month ago.

The performance of the capital goods sector was disappointing, according to the data, declined by 16.3 per cent as against a growth of 6.6 per cent in the same month last year.Mining output also contracted by 3.1 per cent in April, as against growth of 1.6 per cent in the same month a year ago.The minister said, adding that only 12 out of 22 major industrial groups showed positive growth.

The slowdown in industrial production is likely to put pressure on the Reserve Bank to cut lending rates at its mid-quarterly review on June 18.SBI chairman Pratip Chaudhuri said he expected the RBI to cut Cash Reserve Ratio (CRR) by 1 per cent, the portion of deposits that banks are required to keep with the central bank, to ease liquidity situation.