New Delhi, Oct 12 (Inditop.com) Further signs of recovery in Indian industry emerged Monday with the latest official data indicating a growth of 10.4 percent in industrial production during August this year – highest in the last 22 months – over the corresponding month last year.
The index for industrial production (IIP) grew 10.4 percent in the month, as per the data released by the Central Statistical Organisation here.
The annual industrial growth rate for July was revised to 7.2 percent from 6.8 percent reported earlier.
The data showed that while mining output was up 12.9 percent, that for electricity rose 10.6 percent. Output of capital goods and consumer goods sectors expanded respectively by 8.3 percent during the period.
According to figures available, the industrial output in 2008-09 fiscal rose 2.6 percent, down from an 8.5 percent growth the year ago.
Reacting to it, Chandrajit Banerjee, the director general of the Confederation of Indian Industry (CII), said the double digit growth signalled industrial revival and economic recovery.
“The 10 percent plus growth in manufacturing, basic goods, mining, electricity has been buoyed by the government’s stimulus packages announced earlier,” he said in a statement.
The government should continue with the current fiscal and monetary measures, which will further help the industrial and agricultural sectors, Banerjee said. He also hoped that the Reserve Bank of India would continue its tight monetary policies.
Harsh Pati Singhania, president of the Federation of Indian Chambers of Commerce and Industry (FICCI), also welcomed the government’s efforts to revive the manufacturing sector.
As many as 14 of the 17 major industry groups have shown positive growth in August, Singhania said.
“Given this trend in growth in the industrial sector, India can certainly look forward to achieving a comfortable GDP (gross domestic product) growth of about 6.5 percent during the current year.”
According to the Associated Chambers of Commerce and Industry (Assocham), the high growth in industrial production points to recovery in the Indian economy.
“Henceforth, the IIP would start moderately going up and recovery becoming much more pronounced and visible to enable India embark on the growth path it intends to achieve,” Assocham secretary general D.S. Rawat said.
