Industrial production grows at 11.4 per cent in September

Mumbai: Industrial production in the country rose by 11.4 per cent in September 2006 compared to the same month of the previous year. The growth in industrial production amid sustained domestic demand and a surge in exports saw a double-digit growth in manufacturing and electricity sectors. Rising oil prices that added to inflation and prompted banks to raise interest rates had little impact on industrial growth.

The index of industrial production (IIP) during April-September this fiscal stood at 10.9 per cent as compared to the corresponding period of 2005-06.

Manufacturing grew by 12.0 per cent in September 2006, while electricity generation rose 11.3 per cent. Mining output, however, grew by just 3.9 per cent during the month, according to

During April-September this fiscal, manufacturing grew by 12.1 per cent, electricity generation by 6.6 per cent and mining by 3.1 per cent, figures released by Central Statistical Organisation (CSO) said.

India's annual economic growth has averaged 8.1 per cent over the past three years, making it one of the fastest-growing economies in the world.

Manufacturing output grew 12 per cent in September compared with 8.9 per cent in the same month a year ago. Mining production expanded 3.9 per cent in September from last year, while electricity generation was up 11.4 per cent.

The acceleration during the April-September was driven by both a surge in exports as well as domestic demand.

Rising middle class incomes have boosted consumer spending on goods such as cars, phones and television sets and encouraged companies to invest in new projects.

Car sales increased 23 per cent in the first half of the current year, while India overtook China in September in adding new mobile phone subscribers - a record six million in that month.

Indian companies are also becoming increasingly competitive in the global market. Exports totalled $59.3 billion, up 23 per cent from the year before.

The growth in industrial output, coupled with prospects of a good agricultural harvest, will likely help the broader economy maintain the momentum seen in recent years.