New Delhi: Reversing the earlier trends, industry staged a 4.8% growth rate in September from a dismal 1.42% in the previous month.
It was, however, still behind the 7% growth recorded in September last year.
For the first six months of this fiscal, industrial growth, as measured by Index of Industrial Production (IIP), stood at 4.9% compared to 9.5% a year ago.
The figure for August was revised to 1.42% against the provisional estimate of 1.3%, which many policy makers had described as aberration.
Manufacturing, which contributes around 80% in the index, grew by 4.8% in September from 7.4% a year ago, while electricity generation grew by 4.4%, more or less same at 4.5%.
Mining output, however, rose by 5.7% from 4.9% in September 2007.
For the first half, manufacturing grew by almost half at 5.2% from 10% a year ago, while electricity was drastically down to 2.5% from 7.7% and mining to 3.8% from 4.9%.
Power generation also decelerated to 4.4% against 4.5% a year ago though the mining sector growth rate rose by 5.7% compared to 4.9% a year ago.
For the first six months of this fiscal, the industrial growth rate halved to 4.9% compared to 9.5% a year ago.
Pitching for fiscal stimulus to mitigate the negative affects of the slowdown, ICRIER Director General Rajiv Kumar said, “Policy measures should be taken to ensure that the downturn is short and shallow.”
He said the economy is in the midst of a cyclical downturn. “Any notion that this downturn will reverse on its own should be given up.”
As per the use-based classification, capital goods grew by 18.8% in September as against 20.9% during the same period last year while consumer goods improved impressively from a negative 0.2 in September 2007 to 5.6% this year.