Industrial growth at 10.3% year after credit crisis

New Delhi, Dec 11 (PTI) A year since this century's worst
financial crisis choked industrial activity, India's factory
production expanded by 10.3 per cent in October fuelling hopes
that it would power the economy ahead.

The growth -- stupendous compared to the 0.1 per cent in
the year-ago period -- however, failed to enthuse the stock
market which went into a tailspin before recovering ground.
The data comes days after the pleasantly stunning economic
growth numbers. GDP grew 7.9 per cent in Q2 this fiscal,
showing the country was well on the road to recovery provided
farm growth does not dip much in the coming quarters.
For the first seven months of this fiscal, the Index of
Industrial Production (IIP), which measures industrial growth,
expanded by 7.1 per cent against 4.3 per cent a year ago.
Economists say strong industrial growth is due to base
effect (low figures of last year) as well as genuine recovery.
"This is partly base-effect but the economy seems to be
sort of moving up... we will have a 7 per cent growth this
fiscal. Though, that is subject to the drought conditions,"
former chief of PM's economic panel chief Suresh Tendulkar.
Planning Commission Deputy Chairman Montek Singh
Ahluwalia said, "...to get a growth rate well above 10 per
cent is not just a base effect. There is an element of growth
that is taking place which I hope will be sustained."
Manufacturing, which has almost 80 per cent weight in
IIP, grew by 11.1 per cent against (-)0.6 per cent a year ago
helped by stimulus measures unveiled last year after the
global credit crisis. (More) PTI TAN
DDC


The information contained in this electronic message and any attachments to this
message are intended for the exclusive
use of the addressee(s) and may contain proprietary, confidential or privileged
information. If you are not the intended
recipient, you should not disseminate, distribute or copy this e-mail. Please
notify the sender immediately and destroy
all copies of this message and any attachments contained in it.