India's industrial production grows at 10.8 per cent in October

Industrial production in the country rose at a faster rate of 10.8 per cent year-on-year in October this year against a low 4.4 per cent in the previous month, official data showed.

Manufacturing output rose at an annual 11.3 per cent in October, according to quick estimates of the index of industrial production (IIP) compiled by the Central Statistical Organisation (CSO).

Production in the three major sectors that constitute the index, viz, mining, manufacturing and electricity, rose 6.5 per cent, 11.3 per cent and 8.8 per cent, respectively, during October this year.

The present growth rate of IIP shows that the revival of economic growth that started a year back is continuing.

Capital goods production growth swung back to record 22 per cent during October 2010 while production of consumer durables grew 31 per cent during the month.

The high growth in capital goods production was mainly due to a bunching of orders for production of offshore platforms, ship building and repair, electrical control panels, laboratory and scientific instruments, electric generators and turbines, said Sriprakash Jaiswal, minister of state for coal, statistics and programme implementation.

He attributed gains in production of consumer durables to high growth in the production of passenger cars, motorcycles, scooter and mopeds, alarm timepieces and TV set.

Finance minister Pranab Mukherjee also sounded confident that the current trend in industrial production would continue and the fiscal would end with double-digit growth rate.
 
"This is quite encouraging. I hope this trend will continue and double-digit growth in industry would be possible," Mukherjee said.
 
IIP grew at an average 10.3 per cent during April-October 2010-11, the minister said, adding, "The trend is encouraging, all the three important sectors - industry, agriculture and services - are evenly growing, and making the contribution to the GDP, which is a healthy sign."
 
IIP grew 6.9 per cent during April-October last fiscal.
 
Growth in India's industrial production, which slipped to 2.8 per cent in 2008-09 in the wake of the global financial meltdown, rose to 10.4 per cent in 2009-10, helped by stimulus measures provided by the government and the Reserve Bank of India.
 
IIP, which grew at a record 15.08 per cent in July, slipped to 6.91 per cent in August and 4.4 per cent in September.
 
During the April-March 2009-10 financial year India's industrial output rose 10.4 per cent against the 2.8 per cent growth in the previous fiscal.