Despite dismal Oct IIP, see FY12 GDP at 7%: Rangarajan

Industrial output data in October saw a sharp de-growth of 5.1% compared to a growth of 1.9% in September due to poor capital expansion.

Agreeing to the fact that the October IIP data is disappointing, Dr. C Rangarajan, chairman, Prime Minister's Economic Advisory Council (PMEAC) in an interview to CNBC-TV18 said that public sector investments in areas like coal, roads and railways should pick up to boost the economy. "If there is a pick up in public investments and in production for those goods which are in the public demand that can provide as a great stimulus, he added. Despite the dismal IIP data, Rangarajan expects India to grow at 7-7.5% in FY12. "It