Industrial production in the country rose by 12.4
per cent in July this fiscal its highest growth
rate in a decade from a year-ago period.
Index of Industrial Production (IIP) increased by 10.6
per cent during April-July as against 8.9 per cent in
the same period last fiscal, quick estimates of the Central
Statistical Organisation (CSO) show.
record growth in IIP was propelled by a consistently high
growth rate in the manufacturing sector output, which
rose by 13.3 per cent in July, commerce minister Kamal
output had grown by 13.4 per cent in June this year.
Mining and quarrying sector recorded six per cent growth
while electricity sector registered a growth of 8.6 per
cent in July this year.
products industry grew at the fastest rate of 26.8 per
cent, followed by wool, silk and man-made fibre textiles
at 25 per cent.
equipment sector recorded a growth of 22.4 per cent while
base metal and alloy industries grew by 19.5 per cent
and textile products at 17.3 per cent.
Among economic sub-groups, consumer goods sector grew
by 17.9 per cent during July while the capital goods sector
registered a growth of 15.4 per cent.
data on industrial production comes amidst projections
that the Indian economy is set to grow at rates above
nine per cent in the current fiscal.
analysts expect the economy to continue its robust growth
in the second quarter as well, the annual rate of inflation
has been moderate at 4.77 per cent during the week ended
September 23, and well over the five per cent mark for
the half-year period ended September 2006.
increased industrial production is unlikely to put pressure
on interest rates as liquidity in the economy is ample
and as such the Reserve
Bank of India (RBI) is unlikely to trigger an increase
in interest rates in its monetary policy to be announced
later this week.