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Terming the contraction in June industrial output as disappointing, finance mini ster P Chidambaram on Thursday said there is a need

to promote critical sectors to boost growth. "The Quick Estimates of IIP for the month of June are disappointing. It is impor tant to focus on the critical sectors, remove bottlenecks and give a fillip to production," Chidambaram said i n a statement. Industrial production has declined by 1.8% in June from a 9.5% growth in the sam e period a year ago period mainly due to poor show by manufacturing and capital goods sectors, "The production will revive if there are new investments in the demand creating industries," Chidambaram said. As per the official data, industrial output in the April-June quarter too contra cted by 0.1% this fiscal, against a growth of 6.9% in the corresponding period a year ago. Earlier this week, Chidambaram had stressed on removing the supply side constrai nts and boost manufacturing and exports. "We intend to find practical solutions to the problems that impede higher produc tion or output in the coal, mining, petroleum, power, road transport, railway an d port sectors," he had said. The manufacturing sector, which constitutes over 75% of the index, witnessed a s lump in output by a dismal 3.2% in June against a growth of 11.1% in the same mo nth a year ago. The performance of the manufacturing sector was also dismal in April-June quarte r as the output declined by 0.7% against a growth of 7.7% in the three-month per iod a year ago. The capital goods production also declined by massive 27.9% in June against a gr owth rate of 38.7% a year ago.

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