Industrial growth shows teasing revival
The country’s industrial output clocked a better-than-expected growth of 2.4 per cent in November from a contraction in the previous month.business Updated: Jan 12, 2009 22:00 IST
The country’s industrial output clocked a better-than-expected growth of 2.4 per cent in November from a contraction in the previous month, but analysts were not uncertain about a sustained rebound in factory production amid a shrinking domestic and export market.
Official data released on Monday showed that output measured by the index of industrial production (IIP) for November swung favourably after falling by 0.3 per cent in October—the first time in 13 years.
The data showed that production of basic and intermediate goods that grew by 2.3 per cent and 2.6 per cent, respectively, remained uninspiring. The output of capital goods and consumer durables in November fell 2.3 per cent and 4.2 per cent, respectively.
“The details of industrial production continue to suggest weakness in industrial activity,” said Rajeev Malik of Macquarie Securities.
The government and the RBI has announced two sets of fiscal and monetary measures within a month of each other.
Exports have contracted for two successive months since October and the country’s national income growth is expected to fall below 7 per cent, after growing by over 9 per cent in the last few years.
Amit Mitra, secretary general of Federation of Indian Chambers of Commerce and Industry (FICCI) said “the improvement in the November 2008 industrial data kindles the hope that the slowdown could be getting arrested.”