Strong recovery seen as IIP numbers - Rises 16.8% in Dec

Strong recovery seen as IIP numbers - Rises 16.8% in Dec

Industrial production surged by a stunning 16.8 per cent in December 2009, against the contraction of 0.2 per cent in the same month a year ago, driven by a robust performance by the manufacturing sector, particularly consumer durables.

Manufacturing sector, which have around 80 per cent weight in the Index of Industrial Production, which measures industrial growth, rose by 18.5 per cent during the month against 0.6 per cent fall a year ago.

Within this category, the consumer durables segment zoomed 46 per cent against a dip of 4.2 per cent in December 2008.

For the first nine months of the financial year 2009-10, industrial growth stood at 8.6 per cent against 3.6 per cent a year earlier.

The dazzling industrial growth reflected the results yielded by three stimulus packages given by the government to perk up industry that was hit by the global economic downturn.

The stimulus measures comprising duty cuts and increase in public expenditure envisaging revenue sacrifice of Rs 1.86 lakh crore, particularly spurred manufacturing, including consumer durables.

Within manufacturing, capital goods production also surged by 38.8 per cent in past December, against 6.6 per cent a year ago.

Besides, mining grew by 9.5 per cent against 2.2 per cent and electricity generation by 5.4 per cent against 1.6 per cent.