NEW DELHI: Industrial production grew by a whopping 10.4 per cent in August on the back of double-digit growth in mining, manufacturing and
Factory production had expanded by 1.7 per cent in the same month last year.
The impact of stimulus measures was evident as manufacturing grew by 10.2 per cent, electricity by 10.6 per cent in August.
The mining sector clocked a robust growth of 12.9 per cent in the month under review.
It was for the first time in June that the industry grew by a high rate of 8.2 per cent, after it was hit hard by the global financial crisis in the middle of September last year.
Axis Bank Economist Saugata Bhattacharya said the factory production is likely to breach nine-per cent mark in August mainly due to base effect.
"The rise of IIP is mainly due to base effect. The core sector is also high and exports have also picked up on the sequential basis," Kaur said.
Economic think-tank Institute of Economic Growth (IEG) has recently said as the economy is showing signs of recovery the industry would pick up further momentum with a growth of more than seven per cent in August and nearly nine per cent in October.
"The Index for Industrial Production (IIP) has shown an impressive growth of 6.8 per cent (in July). This figure was slightly higher than the last year's growth. It is definitely a pointer towards the revival of industrial growth," the IEG had said in its monthly monitor for the economy.
Indian industry came under adverse impact after US financial services icon Lehman Brothers collapsed, deepening the financial crisis across the world.
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