New Delhi, Sep 11 (IANS) Further signs of recovery in India’s industry emerged Friday with the latest official data indicating a 6.8 percent growth in July over the like month last year.
Notably, the manufacturing output rose 6.8 percent during the month, as per the data on the index of industrial production released by the Central Statistical Organisation here.

The data showed that while mining output was up 9.9 percent, that for electricity rose 4.2 percent. Output of capital goods and consumer goods sectors expanded respectively by two percent and 8.8 percent during the period.

Finance Minister Pranab Mukherjee said the positive growth would continue in the next few months, but it may fail to compensate for the shortfall in exports.

“It will pick up. The trend is that it is picking up,” Mukherjee said at an interactive meeting with the Indian Women’s Press Corps.

“Steel is picking, cement, consumers goods industry are picking up. Housing activity has started that will consume more steel and cement and construction materials,” the minister said.

He, however, cautioned this would not be enough to improve the growth rate further. “There is a possibility, but that is not adequate to compensate in the shortfall in the manufacturing exports.”

Commenting on the IIP growth figure, industry body Confederation of Indian Industry (CII) has said this is encouraging.

“CII is particularly encouraged by the upward revision of the June figures to 8.2 percent as against the earlier estimate of 7.8 percent,” the chamber said in a statement.

However, it also said that too much should not be read into the figures since a period is being entered where the base effect would help India post good growth figures for the next three quarters.

“Although this is not a reflection of the best that the industry can post, but we believe that a definite turnaround has started and the next two quarters would see industry becoming more robust and even starting to look at capacity addition and investments,” the CII said in a statement.

“Currently, the investment demand in the economy is weak and if the industrial growth does indeed pick up as is being indicated, then there could be distinct rise in the non-food credit offtake,” the CII added.

san-dm/ank/vt