New Delhi: Industrial production growth rate bounced back to a 16-month high of 8.2 per cent in October on good performance of the manufacturing, power sector and higher output of capital as well as consumer goods, indicating sudden recovery in the economy. The factory output, as measured by the Index of Industrial Production (IIP), contracted by 5 per cent in October 2011.
The IIP had expanded by 9.5 per cent in June 2011. Industrial output growth in the April-October period this fiscal, however, was 1.2 per cent, less than 3.6 per cent in the same period in 2011-12, according to the official data released in New Delhi on Wednesday.
Meanwhile, the contraction in the industrial production during September 2012 was revised downward to 0.7 per cent per cent from earlier provisional estimates of 0.4 per cent released in November 2012. The manufacturing sector, which constitutes over 75 per cent of the index, grew by robust 9.6 per cent in October, as against a contraction of 6 per cent in same month in 2011.
However, the output of the key sector remained low at one per cent in April-October 2012 as against 3.8 per cent growth in the same period in 2011-12. Capital goods output also shown remarkable improvement as it grew by 7.5 per cent in October, as against a massive contraction of 26.5 per cent in October 2011.
But output of capital goods contracted in the April-October period by 11.4 per cent, as against a dip in production by 0.5 per cent in the 2011-12 period. Power generation grew by 5.5 per cent in October compared 5.6 per cent same month in 2011. The electricity generation in the April-October period is 4.7 per cent against 8.9 per cent in a year-ago period.
Another segment which performed well is consumer goods as its output registered a double-digit growth of 13.2 per cent in October against a meagre 0.1 per cent growth year ago.
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