High industrial growth not to affect rates: FM

Finance Minister P Chidambaram today said high industrial growth, which stood at 12.4% in July, will not necessarily put pressure on interest rates.

Citing RBI data, Chidambaram said while non-food credit is growing by 33% there is ample liquidity in the system. "While credit growth is high, I don't see high industrial growth necessarily exerting pressure on interest rates," he said adding that inter-bank call rates are moderate.

He expressed "happiness" that mining and electricity, which were laggards last year, picked up sharply in July.

Chidambaram said within the manufacturing sector, textiles, man-made yarns, paper, basic chemicals and transport posted more than 10% growth. "All these segments are showing good growth," he said.

Also Read: Industrial output up 12.4% in July