Ushering in the festive mood, industrial growth soared to a 22-month high at 10.4 per cent in August this year, giving clear signals that the stimulus measures have started yielding results and the economy is firmly back on the road to recovery.
Planning Commission Deputy Chairman Montek Singh Ahluwalia described the robust index of industrial production (IIP) data as “a very good Diwali gift,” even as analysts attributed the smart all-round industrial recovery largely to the low base effect, considering factory production posted a mere 1.7 per cent growth in August 2008.
The IIP figures released here on Monday showed that while the manufacturing sector grew by 10.2 per cent during August 2009, the growth in electricity generation was even higher at 10.6 per cent, and the mining sector topped them both with a growth of 12.9 per cent.
The positive impact of the stimulus packages is evident from the fact that 14 of the 17 industry groups posted satisfactory-to-healthy growth.
