India's March industrail output up 13.5 per cent

India's industrial output surged 13.5 per cent in March from a year earlier, the third straight month of slower expansion. However, according to analysts the manufacturing sector will continue to drive strong economic growth in months ahead.

In March factory output growth slowed from a 15.1 per cent gain in February due to a slower rise in manufacturing and mining production, according to government data issued on Wednesday.

According to Montek Singh Ahluwalia, deputy chairman of the Planning Commission, the top government think tank, the pace of industrial growth may slow down more, but would remain in the double digits.

Separately, on the sidelines of a conference, commerce and industry minister Anand Sharma said March's lower number represented only a small fluctuation. "Whatever steps are required shall be taken to ensure that strong broad-based growth in industrial production continues," Sharma told reporters.

Though slower than a month earlier, the data underline the strong uptick in the economy, increasing the likelihood of a rollback of fiscal and monetary stimulus to control high inflation. Analysts expect the momentum to continue, on robust domestic demand with likely normal monsoon rains this year improving farm output.

India's industrial output was up 17.6 per cent in December the second-fastest pace ever, driven by a low base year earlier when the economy was struggling to beat a prolonged slowdown. The pace began to slacken in January and is expected to continue to slide as the impact of the base wears off.