New Delhi, Nov 07: Industrial growth is slated to go up to 5.2-6.2 per cent during September-November backed by an expected rise in farm output, according to Institute of Economic Growth (IEG). "Expected increase in agricultural output followed by good monsoon, and the rise in non-food credit would steer the industrial recovery," IEG said in a report.
According to the economic think-tank, the index for industrial production was slated to show a growth of 5.2 per cent in September, which would further go up to 5.7 per cent in October and to 6.2 per cent in November.
The main basis for the higher growth in IIP was the 5.9 per cent growth in core sector during September compared to 2.2 per cent a year ago.
"Industrial output for august showed a mild decline to 5.2 per cent compared to 6.2 per cent in the same period last year. This decline is a temporary phenomena," IEG said.
The decline was mainly due to fall in output in mining, manufacturing and electricity sectors.
IEG termed the decline in growth in farm output to 1.7 per cent in the first quarter of 2003-04 as a "hang-over effect" and said "the impact of this year's monsoon on overall agriculture growth and hence GDP growth would show up only from the third quarter of 2003-04."
Bureau Report