This ‘spectacular’ growth rate, which is expected to boost the overall economic growth in coming months, is primarily driven by the key manufacturing sector —— especially the consumer goods segment.
However, it is being pointed out that the impressive rise in growth rate of industrial production is partly due to base effect (lower percentage in the previous year).
But, Planning Commission Deputy Chairman Montek Singh Ahluwalia said “posting a growth rate of above 10 per cent is not just due to base effect. One must recognise that growth is now taking place. We hope this will be sustained in coming months.”
Cumulatively during the first seven months of the current fiscal (April to October, 2009) the Index of Industrial Production (IIP), which measures overall industrial production, grew by 7.1 per cent as against 4.3 per cent in the corresponding period of previous financial year, data released here shows.
Manufacturing, which has nearly 80 per cent weight in the IIP, grew by 11.1 per cent in October compared to negative 0.6 per cent in the same month last year.
Within the ambit of manufacturing, consumer durables production expanded by a spectacular 21 per cent in October compared to negative 1.6 per cent a year ago.
Similarly, non-durable consumer goods, recorded a growth rate of 8.1 per cent as against negative 0.6 per cent in October last year.
Mining production
Mining production expanded by 8.2 per cent in October compared to 3.2 per cent last year.
The sign of recovery in industrial production can be judged from the fact that out of 17 industrial categories only one segment—jute and other vegetable fiber textiles except cotton—witnessed decline in production in October this year.
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