The industrial growth rate has bounced back to a 16-month high of 8.2 % in October on good show by manufacturing and power sectors and higher capital and consumer goods output, indicating sudden economic recovery.
The factory output, as measured by the Index of Industrial Production (IIP), had contracted by 5 % in October last year. Industrial output growth in the April-October period this fiscal, however, was 1.2%, less than 3.6 % in the same period in 2011-12. The manufacturing sector, which is over 75 % of the index, grew by a robust 9.6% in October, against a contraction of 6 % in the same month last year.
A segment which performed very well is the consumer goods group as its output showed a double-digit growth of 13.2 % this October against 0.1 % growth a year ago.