Index of Industrial Production (IIP) for the month of February 2006 increased 8.8 per cent from the same month of previous year, according to quick estimates released by the Central Statistical Organisation. Cumulative growth for the April 2005 to February 2006 period stands at 8 per cent from the same period of previous year.

IIP captures the 6 basic infrastructure sectors like mining, electricity generation, cement, steel etc covered under the infrastructure index besides manufacturing.

Manufacturing growth for the month was at 9.5 per cent as compared to February 2005. The strong growth was facilitated by higher output of consumer goods at 12.4 per cent. Within consumer goods, durable goods output increased by 18.2 per cent while output of non-durable goods were higher by 10.6 per cent.

Among various manufacturing sectors, output of food products increased 16.2 per cent while textiles recorded a growth of 15.5 per cent. Other manufacturing industries have posted an output growth of 20.3 per cent.

Some economists believe that the strong growth in manufacturing, especially consumer goods, would prompt the RBI to raise short term interest rates. The RBI would announce its decision on 18 April.