IIP data: India Inc says stronger economic growth on cards

New Delhi:  Cheering robust IIP numbers for November, India Inc today said the factory output data reflects higher growth rates in investment related categories such as capital goods and infrastructure.

Further, industry experts are expecting the factory output growth to become more stronger in the coming quarters.

Industrial production growth zoomed to a 17-month high of 8.4 per cent in November 2017.

The industrial output, measured in terms of Index of Industrial Production (IIP), grew 5.1 per cent in November 2016, as per data released today by the Central Statistics Office.

“This recovery is especially heartening since it reflects higher growth rates in investment related categories such as capital goods and infrastructure/ construction goods. These are also corroborated by other indicators such as the strong performance of the commercial vehicles sector and the pick in the growth rate of bank credit,” CII Director General Chandrajit Banerjee said.

Manufacturing sector, which constitutes 77.63 per cent of the IIP, recorded an impressive growth of 10.2 per cent in November as compared to 4 per cent a year ago.

PHD Chamber President Anil Khaitan said that as the teething problems of GST are almost over, the growth in industrial output has come with a strong rebound and it looks forward to the growth becoming stronger in the coming quarters.

Assocham highlighted the need for creating conducive environment for investments and said it is extremely important for policy makers to create a stable economic environment in India through the upcoming budget.

Source: Times of India

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