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Steps to cool down real sector soon

Special Correspondent

NEW DELHI: Stating that the high industrial growth of 13.6 per cent was a good start for the current financial year, Union Finance Minister, P. Chidambaram on Tuesday hinted at steps to dampen the demand in the overheated sector such as real estate and housing.

``We have no intention to curb demand as such. The intention is to constraint demand in those sectors where there are signs of what you call overheating and example of that could be real estate and housing. I think in these sectors there is reduction in demand,'' Mr. Chidambaram told newsmen here.

The country's industrial production rose by 13.6 per cent in April from 9.9 per cent in the same month last year. While manufacturing recorded a robust 15.1 per cent growth, mining grew by just 3.4 per cent.

On the impact of Reserve Bank of India's measures to tighten money supply in these sectors, the Finance Minister said these steps worked with a time lag and it might take time to have its impact on the intended sectors. However, in other sectors there was no intention to reduce demand, he added. The Government was also worried of a slowdown in some sectors such as textiles in view of the strengthening of the rupee against the dollar. "We will look into it,'' he said.

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