India's industrial production surges 17.6%
By Erika Kinetz |
June 12, 2010, Saturday
|
Print Edition
Print Edition
INDIA'S industrial output surged 17.6 percent in April over last year, as strong investment activity returns Asia's third-largest economy to pre-crisis levels of growth.
The growth in industrial production announced yesterday was much stronger than expected. Manufacturing output grew 19.4 percent in April, mining grew 11.4 percent and electricity 6 percent. Capital goods output surged 72.8 percent, while production of consumer durables grew 37 percent, the Ministry of Statistics said.
"Investment is on an upturn, very sharply," said D.K. Joshi, chief economist at Crisil, a research and ratings agency.
Machinery and equipment was the fastest growing industrial sector, clocking 55.6 percent growth off last year's low base.
March industrial output was revised upward from 13.5 percent to 13.9 percent.
This is the seventh straight month of double-digit industrial growth, and one more sign that Asia's third largest economy has rebounded to pre-crisis levels of activity.
This time last year, industrial output grew a sluggish 1.1 percent.
India's overall economic growth hit 8.6 percent for the quarter ended March, its best in two years. Such strong industrial performance is out of line with historical norms.
Joshi said India's long-term average growth in industrial output has been around 8 percent, rising to near 10 percent in the last few years.
Inflation, especially of food items, has been a persistent problem, and the central bank has hiked key interest rates twice since March.
The growth in industrial production announced yesterday was much stronger than expected. Manufacturing output grew 19.4 percent in April, mining grew 11.4 percent and electricity 6 percent. Capital goods output surged 72.8 percent, while production of consumer durables grew 37 percent, the Ministry of Statistics said.
"Investment is on an upturn, very sharply," said D.K. Joshi, chief economist at Crisil, a research and ratings agency.
Machinery and equipment was the fastest growing industrial sector, clocking 55.6 percent growth off last year's low base.
March industrial output was revised upward from 13.5 percent to 13.9 percent.
This is the seventh straight month of double-digit industrial growth, and one more sign that Asia's third largest economy has rebounded to pre-crisis levels of activity.
This time last year, industrial output grew a sluggish 1.1 percent.
India's overall economic growth hit 8.6 percent for the quarter ended March, its best in two years. Such strong industrial performance is out of line with historical norms.
Joshi said India's long-term average growth in industrial output has been around 8 percent, rising to near 10 percent in the last few years.
Inflation, especially of food items, has been a persistent problem, and the central bank has hiked key interest rates twice since March.
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