Reserve Bank Deputy Governor Subir Gokarn today expressed concern over the sharp fall in factory output growth, saying the latest numbers are disconcerting. However, he was quick to add that the other key indicators such as the corporate earnings and tax collection numbers show that the recovery process is on track, though they may not be as explosive as it was some quarters back.
“The IIP (index of industrial production) is suggesting somewhat of a deceleration (in the growth process). 5.5 (per cent) in August and 4.4 per cent in September, a lot of that deceleration is coming in from a sharp decline in capital goods, which, of course, must raise some concerns,” Gokarn told a CFO (Chief Financial Officers) Summit organised by the Indian Industries here today.
