Former finance minister P Chidambaram slammed the Narendra Modi-led government for the dip in Industrial Production Growth and pointed out that the retail inflation was at a five-month high, a day after the reports of a slipping Industrial Production growth and high retail inflation were released.
“Retail inflation hits 5-month high, industrial growth (IIP) slumps to 7-month low. ‘Achhe Din’ is around the corner. Outgoing CEA (chief economic advisor) says demonetisation certainly contributed to deceleration of the economy. As we had predicted, it cost 1.5% of GDP,” he tweeted.
Outgoing CEA says demonetisation certainly contributed to deceleration of the economy. As we had predicted, it cost 1.5% of GDP.
— P. Chidambaram (@PChidambaram_IN) July 13, 2018
The industrial production growth was down to a seven-month low of 3.2 per cent in May as a result of the slow performance of the manufacturing and power sectors with the poor offtake of fast moving consumer goods (FMCG).
The factory output growth was down to 0.1 per cent from 4.9 per cent to 4.8 per cent in April, according to the data released by the Central Statistics Office (CSO) yesterday.
The Index of Industrial Production (IIP), which is used to measure factory output growth, had expanded in May last year while the previous low was in October 2017 at 1.8 per cent. During April-May of this fiscal, the IIP recorded a growth of 4.4 per cent as compared to 3.1 per cent in the same period year ago.