Industry to maintain double digit growth, says Montek

Attributing the double digit industrial growth rate to stimulus packages, the Planning Commission today said the growth momentum would be maintained in the coming months.

"... To get a growth rate well above 10 per cent is not just a base effect. There is an element growth that is taking place, which I hope will be sustained," Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters here.

Industry, according to the data released earlier in the day, grew by a robust 10.3 per cent in October against a paltry 0.1 per cent in the same month a year ago, powered by manufacturing, particularly consumer durables.

Pointing out that the government efforts are yielding results, Ahluwalia said, "We have been saying consistently that the stimulus is taking effect and the recovery process is therefore gaining ground ... Our forecast about improvement in economic growth is accurate and we would be able to maintain this momentum in coming months."

The Planning Commission has projected a growth rate of 6.5 per cent for the current financial year. The Commission, however, may revise its growth projections in view of high growth rate of 7.9 per cent recorded during the second quarter of 2009-10.