Government to act proactively to sustain growth momentum: Pranab
13 Jan 2012
Enthused by the rise in industrial output and declining inflation, finance minister Pranab Mukherjee yesterday indicated that the government would act proactively to sustain the growth momentum.
He also seemed confident of overall inflation dropping to 6-7 per cent by March-end on the back of falling food prices, which were down for the second consecutive week.
Factory output, as measured by the Index of Industrial Production (IIP), has seen growth in recent months, with the exception of October when it was seen to contract.
He said if the trend continued, better performance could be expected during December- March.
However, for that to happen some proactive decisions would need to be taken about which he could not comment at the moment, he said.
He added it was needed to build on the recovery with a stronger performance of capital goods and therefore investments, to recover the growth momentum in the remaining months of the current financial year. He said the policy focus would have to be adjusted accordingly.
He said inflation would continue to moderate as food prices continued to decline.
