Commerce and Industry Minister Kamal Nath today said the slowdown in industrial growth is 'not a matter of concern' and hoped that the manufacturing growth target set for the current financial year to March would
be achieved. India's industrial production slumped to a nine-month low in July 2007 to 7.1% compared to 13.2% a year ago and 9.0% in June.

"The slowdown is not that much a matter of concern as it is mainly due to contraction of credit that resulted in steep decline in demand of consumer durables," Nath told reporters at an industry function. He said the slowdown in industrial production is not due to any structural deficiency. "The country is likely to achieve 12% manufacturing growth target set for the current financial year," Nath said.

Nath said the monetary policy should essentially aim at contraction of credit to contain inflation but at the same time it should not lead to decline in the demand for consumer durables. He said the government is hopeful of meeting the export target of $ 160 bln set for the current fiscal despite high crude oil prices. "I'm not amending the export target as July and August are difficult months due to the monsoon," he said.

"The improved efficiency and competitive production by Indian exporters has helped offset the high input costs," the trade minister added. On the government's plan to impose cess on organised retail, Nath said, "I
am not aware of any such move on the part of the government.