Industry revives, jobs perk up, funds bloom

The nation’s manufacturing units seem to be buzzing again, aided by consumer durables. Factory output rose 2.7 per cent year-on-year in May, the strongest growth since October, triggering hopes of a strong economic rebound in the coming months.

The nation’s manufacturing units seem to be buzzing again, aided by consumer durables. Factory output rose 2.7 per cent year-on-year in May, the strongest growth since October, triggering hopes of a strong economic rebound in the coming months.

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Manufacturing, which accounts for 80 per cent of overall industrial output, grew by 2.5 per cent compared to 0.7 per cent in April.

But the real story lay in the consumer durables sector that grew by a healthy 12.4 per cent.

The latest data shone out as beacon hope for the new government groping for options to sustain growth amid the worst global economic slowdown in the last 80 years.

“(Industrial growth is) showing a further improvement.... I think we are back on track as was expected,” Finance Secretary Ashok Chawla said.

Analysts endorsed the view.

“The performance of the Indian manufacturing economy improved further during May, building on the growth seen in April. The domestic market was the main driver of expansion, as foreign demand for Indian manufactures remained weak,” global financial information service provider Markit said in a report.

“I have been saying and others are saying that the worst is over. The real question is how rapidly we will resume growth,” Planning Commission Deputy Chairman Montek Singh Ahluwalia said.