SME Times - Industry Hails Manufacturing Sector Growth, Indian Manufacturing Sector Growth, Indian Manufacturing Sector Growth Double in 2009-10, Indian Manufacturing Industry Grow Double in 2009-10

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SME Times News Bureau | 13 May, 2010
The double digit growth clocked by the country's manufacturing sector in 2009-10 — a year marked by unprecedented financial turmoil and demand slump in all major economies across the globe — was hailed by the Indian industry.

"It is heartening to see that manufacturing sector has clocked a double digit growth in 2009-10, a year which was marred by deep global economic crisis. Government’s stimulus measures have provided a much needed reprieve to Indian manufacturing sector," said Federation of Indian Chambers of Commerce and Industry (FICCI) Secretary General Amit Mitra reacting to the IIP figures.

Despite the withdrawal of fiscal stimuli packages and the tightening of monetary policy, the country's industrial output also rose by an impressive 13.5 percent in March, which was largely owing to a low-base year and a good showing of 14.3 percent growth by the manufacturing sector.

For the year 2009-10, the manufacturing sector grew by 10.9 percent from 2.8 percent in the previous fiscal, the quick estimates released by the CSO in the Ministry of Statistics and Programme Implementation on Wednesday.

Among the manufacturing sectors, the output in the consumer durables segment rose 32 per cent while the capital goods surged 27.4 percent, an indicator of the continuing capacity building efforts in the economy.

According to the FICCI chief, the outlook for manufacturing sector in India in the coming months remains positive as both the consumer and industrial demand remains healthy in India which is also evident from robust growth of capital goods and consumer durable sector.

However, Mitra cautioned that the month-over-month growth of manufacturing sector has been slowing down since January 2010 which has also been confirmed by FICCI’s latest survey on the manufacturing sector.

"Government needs to take this aspect into account while deciding its monetary and exchange rate policy for the coming months," he said.

Commenting on the recent manufacturing led industrial growth in March, the Planning Commission Deputy Chairman, Montek Singh Ahluwalia, said he expects industrial growth to continue its double-digit run in the current fiscal as well.

Separately, the Commerce and Industry Minister, Anand Sharma, said that the government will review how to sustain its robust growth in factory output in coming months.