Finance Minister Pranab Mukherjee said slowdown in global demand and investment activity has impacted IIP is the finance minister twisting the tale of stagflation has weeded into Indian economy as its symptoms were visible when the nation policy worked for MNC and some selective band of industrialist along with injection of unaccounted surplus money of influential.This gave rise to some economical boost for some time but when the economy does work for few then its ballooning gets burst the same is happening globally and people across the globe are on the streets for the global economic reforms are inbuilt for the classes and not masses .The global disease of the economic reforms to give way for the MNC and other beneficiaries in the system and for the system has caught the global attention.There is therefore natural inflation,deflation and stagflation is prevailing in various countries according to their state of economy.But the academia,propagators of economic reforms for world economy in their hurly-burly attitude to amass the wealth for their mentors are making the situation more precarious because of their not following the basic of the economy principles .What is the basic principle for economic growth is that the policy of economic growth must work for mass growth and not selective or class growth.
India has towering economist and their actions seems to work for selective few thus the country reels under economic crunch.Finance Minister said “The IIP figures are disappointing… Continued weak global business sentiments are also adversely impacting recovery in domestic private investment,” Mukherjee told reporters in New Delhi on Friday.
He further elaborates the data and explains, Factory output, as measured by the Index of Industrial Production (IIP), contracted in March to a five-year low of 3.5 per cent.
The IIP growth was higher at 9.4 per cent in March last year. “Domestic investment recovery remains frail… Though RBI’s monetary stance has been reversed in last policy announcement, it will take some more time for interest costs to come down,” Mukherjee said.
On an annual basis, the IIP grew by a meagre 2.8 per cent, as against 8.2 per cent in the 2010-11 fiscal.
Saying that the revival of manufacturing output in the January-March quarter was not on expected lines, Mukherjee said part of the dip in March IIP numbers is due to base factor.
Expressing “deep concern” over the IIP numbers, Commerce and Industry Minister Anand Sharma said that he would be meeting the exporters this month to analyse the impact of slowdown in global demand.
As per the official data, output of the manufacturing sector, which constitutes over 75 per cent of the index, contracted by 4.4 per cent in March, compared to growth of 11 per cent in March 2011.
Output in the capital goods sector contracted by 21.3 per cent as against a growth of 14.5 per cent in the same month last year.
Mining output too fell by 1.3 per cent in March, from a growth of 0.4 per cent in the same month a year ago.
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