The Indian government would set up a committee to examine the Index of Industrial Production or IIP and look into ways to tighten various sources of data collection, reports said, quoting Prime Minister's Economic Advisory Council Chairman C. Rangarajan.
The IIP growth has been revised downwards to 1.14 percent for January, from the provisional estimates of 6.8 percent, according to the official data released on Thursday.
Rangarajan pointed out that data relating to IIP comes from several sources, they are then put together by the Ministry and released. "Therefore, we really need to tighten the various sources from which the data are collected".
The former RBI Governor said industrial production growth rate in February and the revised one for January certainly indicate that industrial productivity has not yet picked up.
"Therefore, overall growth rate of industrial production during the year (2011-12) will only be what we have been indicating earlier....3.8 percent....", he said.
Showing persistent sluggishness in the economy, industrial production growth slowed to 4.1 percent in February this year, mainly due to poor performance of manufacturing sector and consumer goods segment.
Output of the manufacturing sector, which constitutes over 75 percent of the index, rose by just four percent in February, compared to 7.5 percent in the same month last year.
by RTT Staff Writer
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