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| Industry grows by robust 10.3% in Oct |
| Press Trust of India / New Delhi Dec 11, 2009, 12:11 IST |
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Industry grew by a robust 10.3 per cent in October against a paltry 0.1 per cent a year ago, powered by manufacturing, particularly consumer durables, which was driven by the stimulus packages.
The strong industrial production data came days after better-than-expected economic growth of 7.9 per cent in the second quarter of this fiscal, reflecting that the economy would sustain the recovery provided agriculture does not slide too much.
For the first seven months of this fiscal, industry expanded by 7.1 per cent against 4.3 per cent a year ago.
Manufacturing, which has almost 80 per cent weight in the Index of Industrial Production, grew by 11.1 per cent against (-)0.6 per cent a year ago, when the industry faced the full impact of the world financial and economic crisis after the collapse of US financial services icon Lehman Brothers.
Within manufacturing, consumer durables production expanded by 21 per cent in October against (-)1.6 per cent a year ago.
Mining production grew by 8.2 per cent in the month against 3.2 per cent and electricity generation expanded by 4.7 per cent compared to 4.4 per cent.
Industrial growth for September was revised to 9.6 per cent from provisional estimate of 9.1 per cent.
A year since this century's worst financial crisis choked industrial activity, India's factory production expanded by 10.3 per cent in October fuelling hopes that it would power the economy ahead.
The growth -- stupendous compared to the 0.1 per cent in the year-ago period -- however, failed to enthuse the stock market which went into a tailspin before recovering ground.
The data comes days after the pleasantly stunning economic growth numbers. GDP grew 7.9 per cent in Q2 this fiscal, showing the country was well on the road to recovery provided farm growth does not dip much in the coming quarters.
For the first seven months of this fiscal, the Index of Industrial Production (IIP), which measures industrial growth, expanded by 7.1 per cent against 4.3 per cent a year ago.
Economists say strong industrial growth is due to base effect (low figures of last year) as well as genuine recovery.
"This is partly base-effect but the economy seems to be sort of moving up... We will have a 7 per cent growth this fiscal. Though, that is subject to the drought conditions," former chief of PM's economic panel chief Suresh Tendulkar.
Planning Commission Deputy Chairman Montek Singh Ahluwalia said, "...To get a growth rate well above 10 per cent is not just a base effect. There is an element of growth that is taking place which I hope will be sustained."
Manufacturing, which has almost 80 per cent weight in IIP, grew by 11.1 per cent against (-)0.6 per cent a year ago helped by stimulus measures unveiled last year after the global credit crisis.
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