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Posted on Dec 12, 10:02PM | IANS
India's industrial production rose by 8.2 percent in October from a year earlier on a rebound in manufacturing, power and higher output of capital as well as consumer goods, indicating a recovery in the economy, government data showed Wednesday.
Industrial production had contracted by 5 per cent in the like period of the previous fiscal.
Finance Minister P Chidambaram said the data reflected emergence of "green shoots" in the economy.
"I am very encouraged by the indications of the green shoots in economy in terms of production. IIP figures are very encouraging," he told reporters.
According data released by the Central Statistical Office (CSO), the manufacturing output, which has a 75.5 percent weight in the index of industrial production (IIP), grew 9.6 percent from a year earlier when it had fallen 6.0 percent in October, 2011.
The sector did surprisingly well in spite of facing weak demand in both foreign and domestic markets.
Mining output declined by slower 0.1 percent as against a fall of 5.9 percent in October, 2011.
The electricity sector grew by 5.5 percent from an increase of 5.6 percent in the corresponding period of last year.
Growth was also witnessed in basic goods (4.1 percent), capital goods (7.5 percent), consumer durables (16.5 percent) and consumer non-durables (10.1 percent).
According to the CSO, telephone instruments, passenger cars, diesel, conductor, aluminium, sugar, petrol, rice and cotton cloths industries grew at a brisk pace.
Chidambaram said capital goods output at 7.5 per cent was very encouraging.
"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.