Industrial production growth soars 8.2% in Oct, raises hopes of economic recovery
this fiscal, however, was 1.2 per cent, less than 3.6 per cent in the same period in 2011-12.
On the impact of October growth rate on GDP for the fiscal, Chidambaram said, "One swallow doesn't make a summer. There are signs of green shoots. Let us be happy about the moment. But let us see how we go forward in the next four
months".
So far this fiscal, Chidambaram said, IIP had shown positive growth only in May at 2.5 per cent and August at 2.3 per cent.
"Let's see what the next four months bring us. Investments are taking place, capacity is being created and consumption is happening in consumer durables and non-
durables," he added.
According to the Prime Minister's Economic Advisory Council Chairman C Rangarajan, the October IIP number is much higher than what was expected.
He said there was a need for industrial growth of about 8-9 per cent in the second half of 2012-13 to keep the economic growth at around 6 per cent this fiscal.
Capital goods output also showed remarkable improvement - up 7.5 per cent in October, as against a massive contraction of 26.5 per cent in October 2011.
However, output of capital goods has contracted in the April-October period by 11.4 per cent, as against a dip in production by 0.5 per cent in the year-ago period.
Power generation expanded by 5.5 per cent in October, compared to 5.6 per cent same month last year. The electricity generation in the April-October period is up 4.7 per cent, as against 8.9
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