Industrial production may pick up to 6.9% in FY 13: CMIE
Mumbai: The growth in industrial production is expected to accelerate to 6.9 percent in FY 13 from 3.9 percent estimated for FY 12, an economic think-tank said.
"We expect the growth in industrial production to accelerate to 6.9 percent in FY 13 from 3.9 percent estimated in FY 12. The growth will pick up due to easing of supply constrains, particularly in the mining sector, and further acceleration in electricity generation," Centre for Monitoring Indian Economy said here.
The performance of the manufacturing sector is also expected to improve in FY 13, owing to an increase in the purchasing power of both the urban and the rural consumers, improvement in availability of raw materials and huge capacity additions, the CMIE report said.
"We expect the mining sector to stage a good recovery and pull up overall industrial production in FY 13. Output in mined products is expected to grow by 5.5 percent in FY 13, after falling by two percent in the preceding year.
Production of coal which accounts for almost a third of the mined products output, is likely to grow by eight percent in FY 13, after remaining flat in FY 12 following fresh capacity additions.
CMIE expects crude oil production to grow by 6.5 percent, much faster than the one percent growth clocked in FY 12. The capacity addition by ONGC is likely to augment output of crude oil and natural gas in FY 13 while production of natural gas too is expected to rise by three percent, after falling by nine percent in FY 12, it said.
The growth in power generation is expected to accelerate to 13.2 percent in FY 13 from eight percent in FY 12.
Generation of thermal power, which accounts for around 80 percent of the country's total power generation, is expected to rise by 14.4 percent due to capacity additions and a likely improvement in availability of coal. Generation of nuclear power may rise by 17.2 percent and that of thermal power by 6.5 percent, it said.
CMIE said that the growth of the manufacturing sector would accelerate to 5.8 percent in FY 13 from 3.9 percent in FY 12 riding on possible ten percent growth in automobiles and basic metals industries.
Besides, the textile and the machinery industry, which had pulled down the growth of the manufacturing sector in FY 12, would do well in FY 13, it said.