New Delhi, May 24 (IANS) India’s industrial production will register double-digit growth in the 2010-11 financial year, according to the government.
‘Inspite of a calibrated withdrawal in the shape of a partial rollback of incentives, with a view to rein in inflation through fiscal and monetary measures, the performance in the industrial sector is expected to remain steady in 2010-11,’ says an official note on industrial production.
India’s industrial output, measured by the index of industrial production (IIP), rose by an impressive 13.5 percent in March, despite the withdrawal of fiscal stimuli and tightening of the monetary policy, taking the overall expansion for 2009-10 to 10.4 percent.
During March, manufacturing output rose 14.3 percent, mining by 11 percent and electricity by 7.7 percent.
The cumulative growth for 2009-10 for these three sectors was 10.9 percent, 9.7 percent and 6 percent respectively.
‘The growth in these sectors is expected to remain strong and with this, the overall growth in IIP is expected to be double digit during 2010-11,’ a commerce ministry official said.
Asked about the likely impact of the European debt crisis on Indian economy, he said: ‘Till now, there has not been any significant impact. But we need to be very cautious. The situation needs close watch.’