India concerned about industrial slowdown

FE Team | Published: December 16, 2011 00:00:00 | Updated: February 01, 2018 00:00:00

NEW DELHI, Dec 15 (Economic Times): A slowdown in India's industrial output is of particular concern to the government, the finance minister said on Thursday. Pranab Mukherjee also said he was concerned about the fiscal deficit and the widening current account deficit that have heightened worries about the health of Asia's third largest economy. Industrial output contracted more than 5 percent in October, pulled down by a sharp drop in the production of capital goods and piling pressure on the central bank to hold rates at Friday's policy review. With growth in the June to September quarter slipping below 7 percent and revenues under strain, the fiscal deficit target of 4.6 percent for the current fiscal year is under pressure and policymakers including the finance minister have admitted that meeting the deficit target will be difficult.