Led by a strong growth in the automobile, manufacturing and power sectors, India’s factory output expansion sped to 10.8 percent in October from just 4.4 percent in the previous month, raising hopes of double-digit growth this fiscal.
“Figures suggest the industrial growth for the past seven months averaged at 10.3 per cent. We hope double-digit momentum in industrial growth will be sustained,” Finance Minister Pranab Mukherjee said.“The growth is coming from all sectors. We will be able to achieve balance and growth in the coming financial year,” Mukherjee told reporters in Parliament House, reacting to the growth numbers released by the Central Statistical Organisation (CSO).
The fresh data on the index of industrial production revealed that the output of the three major sectors — mining, manufacturing and electricity — expanded by 6.5 percent, 11.3 percent and 8.8 percent, respectively.
Capital goods with 22 percent and consumer durables with 31 percent recorded significant expansion.
“In terms of industries, as many as 15 out of the 17 industry groups have shown positive growth during the month of October 2010 as compared to the corresponding month of the previous year,” the CSO said in a statement.
Deputy Chairman Montek Singh Ahluwalia, nevertheless, cautioned against getting carried away by short-term variations, referring to the sharp differences in the monthly data on industrial production.
“We should look at the bigger picture. What is true is in the year as a whole production growth is doing quite well,” said Ahluwalia.
