Government today exuded confidence that industrial output would be close to 10 per cent this financial year as it welcomed the return of double-digit growth in the sector during October,
"I hope that it (IIP growth rate) would be close to 10 per cent but it may not actually get to 10 per cent", Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters here.
After a gap of two months, the Index of Industrial Production (IIP) recorded a double digit growth of 10.8 per cent in October.
Having recorded an increase of 15.08 per cent in July, IIP slipped to 6.91 per cent in August and further to 4.4 per cent in September.
"We have to wait and see whether this (high IIP) growth is maintained in the remaining months of the year because this is the period last year when growth picked up.
"There could be base level effect so the growth rate could be lower compared to same months last year", Ahluwalia said.
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As regards the economic growth during the current fiscal, he said, "the 8.5 per cent (GDP growth) would definitely be achieved, it could be little higher. But we are not giving precise forecast on that".
The economy during the first half of the current fiscal recorded an increase of 8.9 per cent, raising hopes that the fiscal might witness economic expansion of 9 per cent, up from 7.4 per cent in 2009-10.
Asked about the need to provide further stimulus to fuel growth momentum, he said, "This is not the occasion when stimulus (should be given)...When economy is growing at 8.5 per cent."
"It is very difficult to say that you need stimulus... of course you need policies which retain this growth momentum".
Although economy is doing very well on the growth front, inflation is still high, Ahluwalia said, adding the government will have to keep a vigil on it.
"Growth is doing very well. Things are improving on inflation, but in the present situation inflation is still high. We cannot relax vigil on inflation", he said.