Factory output logs 10.4% growth in FY10

Though there appears to be robust revival in industrial production, which was reeling under ripple effect of contraction of demand due to global slowdown, there is a decline in intensity of rise in month-over month industrial growth rate noticed in recent months. 

For instance, though industrial growth, as measured by Index of Industrial Production (IIP), maintained its double digit growth for sixth consecutive month at 13.5 per cent in March this year, it was lower than expected. Analysis of latest IIP data shows that industrial growth posted a higher growth rate of 15.1 per cent in February and 16 per cent in January.

The expansion in IIP has stayed above 10 per cent for six months in a row with December last year witnessing the highest growth rate for industry peaking at 17.6 per cent.

Planning Commission Deputy Chairman Montek Singh Ahluwalia said decline in industrial production in March would not adversely affect the outlook for industrial production in the current fiscal.