India’s industrial production zoomed into the positive territory with the April Index of Industrial Production (IIP) recording a positive growth of 1.4% against a revised estimate of (-) 0.4% for March 2009.
The growth in the index is supported by all the constituents with electricity production witnessing a growth of 7.1%, manufacturing activity growing by 0.7% and mining output expanding by 3.8% on a year-on-year basis.
Looking at the use based classification, basic goods grew by 4.6% while intermediate goods were up by 7.1%. Capital goods however showed a negative growth of 1.3%, reflecting that despite positive signals being shown by the demand side of economy, investment will probably recover slowly. Consumer goods also recorded a negative growth of 4.7%, primarily due to negative growth in non-durable goods segment at 10.4% while the durable consumer goods grew at 16.9%.