Industrial Output Expands Rapidly in India

By admin • June 11th, 2010

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India’s Industrial Output expanded 17.6% in April, the seventh month a double digit figure has been recorded. The large expansion has been helped by a rise in consumer demand, exports and infrastructure spending.

Even with this impressive result, Finance Minister Pranab Mukerjee has said he would still like to see more,  “My appetite is infinite. I would have been happier, if it was 20 per cent”. This reaction could be seen as an indication that this market can grow even further.

The impressive display in industrial growth has been linked backed to a growth in the capital goods market for manufacturing, which expanded at an unprecedented 72.8% in April.

These results are very encouraging, given that this time last year industrial growth was at a mere 1.1%. The fact that so many sectors such as industrial output and manufacturing are growing as such high rates is a very encouraging sign as these markets are heavily reliant on consumer demand.

It is predicted that if these trends continue for this fiscal year, India will easily reach its target of 8.5% growth for 2010-2011.

International Government Affairs and Corporate Relations Consultants for Emerging Markets

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