Planning Commission Deputy Chairman Montek Singh Ahluwalia on Monday said, key economic reforms need to be implemented in the coming months to counter the current slump in industrial output. He was expressing concern over the slump in industrial output that plunged to minus 5.1 per cent in October. Talking to reporters in New Delhi he said that a holistic look needs to be taken at all aspects of the situation that may be constraining investment . Factory output, measured in terms of the Index of Industrial Production, IIP, slumped to minus-5.1 per cent in October this year as compared to 11.3 per cent growth registered during the corresponding month of last year.

Reacting on the monthly data, Mr. Ahluwalia said slump in investment was the biggest concern. He said there was no certainty whether the growth will turnaround in the third quarter of the current fiscal. Cumulative growth in industrial output has slumped to 3.5 per cent in April-October 2011 period as compared to 8.7 per cent during the corresponding period of last year. India 's overall economic growth has decelerated to 7.7 per cent in the first quarter of 2011-12 and it fell further to 6.9 per cent in the second quarter against the government's budgetary target of around 9 per cent.