The growth rate of the index of industrial production (IIP) may get back into positive territory in January as a result of a series of fiscal measures taken by the government to prop up economy.
"I would like it (IIP) to be positive in January itself. I would hope it is positive in January but one has to see," Department of Industrial Policy and Promotion (DIPP) Secretary Ajay Shankar told reporters here.
On the domestic side, the demand build up is still going upwards and if the process is correct and if the various stimulus that the government has put in place begins to have an effect, he said, "Then we could in the domestic economy, be more or less maintaining our growth strategy or growth number of 7 per cent."
The industrial growth rate turned negative for the second time in December 2008, in the first nine months of the current fiscal. IIP had contracted for the first time in 15 years in October 2008.
Meanwhile, the Reserve Bank today said negative growth in the Index of Industrial Production (IIP) in the two recent months is one of the reasons for the country's growth moderation to be steeper and more extended than earlier projected.
He added, "The government has been very receptive to the industry segments, their problems, needs and we would like to respond as quickly as possible... Whatever specific things we can do to help individual industry segments."