India Manufacturing Talk

India Manufacturing Surges in August

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• Author: Nikhil
• October 28, 2009
• Category: General, Goverment Policy, Stats and Numbers

A recent article in Automation World, freelance journalist Uday Lal Pai has put down some positive figures based on industrial output as of August 2009.  Manufacturing output is expected to be at 8% for the year ending March 2010 and Industrial Production (IIP) has grown 10.4% YOY as of August 2009 – the highest its been over the past 22 months.  Indian Government officials have been quick to claim that the worst might be over for the Indian economy based on these strong numbers.

“It (industrial growth) is a good sign and it is a process of recovery.  We are hoping that when the final figure for the second quarter (July-September)is available, there will perhaps be some higher growth.”

Finance Minister Pranab Mukherjee

“I think that the industrial production number clearly indicates that industrial recovery is well on the way. I would expect the industrial output to grow 7.5 percent to 8 percent and the GDP (gross domestic product) to expand by 6 percent to 6.5 percent during the current financial year.”

Prime Minister’s Economic Advisory Committee Chairman C. Rangarajan

What may be of note to some is that domestic demand is the key driver to this surge as exports continue to be sluggish.  The global meltdown has left both Europe and  the USA lagging in manufacturing demand and is strongly felt in the local market as exporters have seen dramatic drop in demand over the last year.

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