India's Index of Industrial production (IIP) grows by 17.6 per cent in April


Industrial output rose 17.6 per cent in April, growing in double digits for the seventh straight month, on good showing by manufacturing, particularly capital and consumer goods.
In comparison, industry grew by 1.1 per cent in April last year. 

Manufacturing, which constitutes around 80 per cent of the index of industrial production (IIP), grew 19.4 per cent in April against 0.4 per cent a year ago. 

Within manufacturing, capital goods production rose by 72.8 per cent in April against a contraction of 5.9 per cent a year ago. 

Consumer durables rose by 37 per cent against 17.6 per cent same period last year. 

The other two sectors--mining and electricity--expanded by 11.4 per cent and 6 per cent in April, respectively against 3.4 per cent and 6.7 per cent in the same period last year. 

According to the data, of the 17 industries, as many as 15 showed positive growth in April. 

Industrial production expanded by 17.7 per cent in December 2009.

This increment in IIP Data, is really a reason to rejoice, but at the same time it signals that now RBI and government may start taking back the funds from the economy, put during the bad times in the economy, to give it a push. Hence, we may expect an announcement in the near term of the increment of interest rates, which will prove the improvement in the economy shown by these IIP Data.