PM says Oct IIP shows India a country of opportunities

A day after industrial growth rebounded to a five-year high in October, Prime Minister Narendra Modi on Saturday termed it as reflection of India being a country of opportunities.

Addressing a joint press meet with Japanese counterpart Shinzo Abe, Modi said IIP grew a five-year high in India, while Japan also recorded economic growth.

Industrial output grew by 9.8 per cent in October on the support of robust demand for manufactured products in the festival month compared to just 3.6 per cent in September.

Manufacturing, which constitutes three-fourth of IIP, recovered big time with a growth of 10.6 per cent in October after a tepid showing of 2.6 per cent in September.

To support Modi's 'Make in India' initiative, Japan has created a fund of about $12 billion which will be provided to Japanese companies for manufacturing in India.

Modi's statement was bit of divergent from economists who cautioned against reading too much into the October IIP as it was due to huge demand because of the festival month and low base effect. IIP contracted 2.7 per cent in October.