FM expects industry to grow by 12-13% in 2010

Sep 10, 2010 |

New Delhi

Enthused by 13.8 per cent industrial growth in July, finance minister Pranab Mukherjee on Friday pegged industrial expansion at 12-13 per cent in 2010. He also said the manufacturing sector, which generates jobs, was performing well.

"I expect average industrial growth to be between 12-13 per cent this year. Manufacturing, which generates employment is doing well," Mr Mukherjee told reporters.

When asked whether RBI will further tighten monetary policy to combat inflation, the finance minister said, "Government and RBI are watching. Let us see. We will take actions as the situation demands."

RBI is expected to raise its short-term borrowing and lending rates at its September 16 mid-quarter review. Overall inflation for the month of July was 9.97 per cent, while figures for August are expected next week. Food inflation shot up to 11.47 per cent towards the end of August from 10.86 per cent in the previous week.

Industrial growth figures for July exceeded expectations by accelerating to 13.8 per cent in July from 7.2 per cent a year ago. Most experts had earlier pegged the growth to be lower, in single digit figure. Manufacturing grew by 15 per cent in July against 7.4 per cent a year ago. However, industrial growth stood at 11.4 per cent in the first four months of this fiscal.

The government expects the Industry sector, which constitutes little less than 20 per cent to India’s economy, to grow by 8.5 per cent this fiscal.

Post new comment

<form action="/comment/reply/32257" accept-charset="UTF-8" method="post" id="comment-form"> <div><div class="form-item" id="edit-name-wrapper"> <label for="edit-name">Your name: <span class="form-required" title="This field is required.">*</span></label> <input type="text" maxlength="60" name="name" id="edit-name" size="30" value="Reader" class="form-text required" /> </div> <div class="form-item" id="edit-mail-wrapper"> <label for="edit-mail">E-Mail Address: <span class="form-required" title="This field is required.">*</span></label> <input type="text" maxlength="64" name="mail" id="edit-mail" size="30" value="" class="form-text required" /> <div class="description">The content of this field is kept private and will not be shown publicly.</div> </div> <div class="form-item" id="edit-comment-wrapper"> <label for="edit-comment">Comment: <span class="form-required" title="This field is required.">*</span></label> <textarea cols="60" rows="15" name="comment" id="edit-comment" class="form-textarea resizable required"></textarea> </div> <fieldset class=" collapsible collapsed"><legend>Input format</legend><div class="form-item" id="edit-format-1-wrapper"> <label class="option" for="edit-format-1"><input type="radio" id="edit-format-1" name="format" value="1" class="form-radio" /> Filtered HTML</label> <div class="description"><ul class="tips"><li>Web page addresses and e-mail addresses turn into links automatically.</li><li>Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd></li><li>Lines and paragraphs break automatically.</li></ul></div> </div> <div class="form-item" id="edit-format-2-wrapper"> <label class="option" for="edit-format-2"><input type="radio" id="edit-format-2" name="format" value="2" checked="checked" class="form-radio" /> Full HTML</label> <div class="description"><ul class="tips"><li>Web page addresses and e-mail addresses turn into links automatically.</li><li>Lines and paragraphs break automatically.</li></ul></div> </div> </fieldset> <input type="hidden" name="form_build_id" id="form-4193163be361c243f079f9c68dd7101d" value="form-4193163be361c243f079f9c68dd7101d" /> <input type="hidden" name="form_id" id="edit-comment-form" value="comment_form" /> <fieldset class="captcha"><legend>CAPTCHA</legend><div class="description">This question is for testing whether you are a human visitor and to prevent automated spam submissions.</div><input type="hidden" name="captcha_sid" id="edit-captcha-sid" value="88661343" /> <input type="hidden" name="captcha_response" id="edit-captcha-response" value="NLPCaptcha" /> <div class="form-item"> <div id="nlpcaptcha_ajax_api_container"><script type="text/javascript"> var NLPOptions = {key:'c4823cf77a2526b0fba265e2af75c1b5'};</script><script type="text/javascript" src="http://call.nlpcaptcha.in/js/captcha.js" ></script></div> </div> </fieldset> <span class="btn-left"><span class="btn-right"><input type="submit" name="op" id="edit-submit" value="Save" class="form-submit" /></span></span> </div></form>