Indian economy is recovering and gradually gathering momentum. According to the latest report of the Central Statistical Organization (CSO) compared to April 2009, industrial output grew two fold in May 2009. Mr. Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, said that the worst is over for the Indian economy.
The Index of Industrial Production (IIP) data showed that, compared to the 4.4% growth rate of May 2008, the 2.7% growth of May 2009 is far less but it is higher than the 1.2% growth in April 2009, the first month when industrial growth became positive. This is the second straight month when Indian industrial output showed positive growth shooting the cumulative increase to 1.95%. Thanks to the high consumer and election spending and government stimulus package.
The manufacturing sector led the growth of May. It grew by 2.5% which includes an impressive 12.4% growth in demand in the “consumer durable goods” segment against 2.8% in May 2008. Sales of TV sets and refrigerators went up. On the contrary, the “consumer non-durables” registered a 2.3% slump and further decreased by 3.6%.
Mining sector observed a 3.7% growth and power generation 3.3%.
Eight other sectors including cotton textiles, jute, and metal registered poor production growth.