Industry grows by 13.5% in March

Industrial output maintained its double digit growth for the sixth consecutive month at 13.5 per cent in March, but was lower than expected.

For the year 2009-10, industry grew by 10.4 per cent, up from 2.8 per cent in the previous financial year, according to the Index of Industrial Production (IIP) figures released by the government on Wednesday.

Industrial growth, as measured by the index of industrial production (IIP), was lower than 15.1 per cent in February and 16 per cent in January, as also the consensus forecast. While Crisil principal economist D K Joshi predicted industry to grow by 15 per cent, Research division of HDFC Bank had pegged it at 15.5 per cent.

The double digit rise in March was largely owing to a low-base year and a good showing of 14.3 per cent by manufacturing.

Mining rose 11 per cent and electricity by 7.7 per cent in March. Consumer durable, which was particularly hit by the global crisis, expanded 32 per cent in the month while capital goods production rose 27.4 per cent.

As many as 14 out of the 17 industrial groups showed positive growth in March. This is the sixth consecutive month of double digit growth in the industrial output, prompting experts to peg economic growth at over 7.2 per cent in 2009-10.
For the year, manufacturing sector accelerated to 10.9 per cent from 2.8 per cent in the previous fiscal. Mining output and power generation rose to 9.7 per cent and 6 per cent, respectively, from 2.6 per cent and 2.8 per cent, respectively, in the previous fiscal.