Mumbai: Strong consumption and investment demand are expected to drive industrial growth in 2010-11, economic thinktank Centre for Monitoring Indian Economy (CMIE) has said in its monthly review.
“We expect industrial production to grow by a buoyant 9.2% in 2010-11. The growth will come on top of a 10.4% growth in industrial production, as measured by the Index of Industrial Production (IIP) in 2009-10,” CMIE said.
The industry had witnessed a sharp deceleration in growth in 2008-09 as the global liquidity crisis hit the Indian shores in the second half of the year.
However, the industry recovered swiftly from this shock and reported a robust growth in 2009-10. The acceleration in growth was witnessed across all segments of the industry. The growth in output of the manufacturing sector jumped to 10.9% from 2.7% in 2008-09.
The sharp acceleration in growth was witnessed in spite of a 5% fall in agricultural crop production, the key input for a number of industries.
Growth in output of mined products and electricity generation also surged to 9.8% and 6%, respectively from below 3% in 2009-10, CMIE said.
CMIE expects the industry to continue on its high growth trajectory in 2010-11, backed by a healthy rise in the consumption and the investment demand.