Strong industrial recovery in October
The October Index of Industrial Production Growth at 10.3% strengthens the signs of industrial recovery, said a CII press release. "The October IIP growth clearly shows the resilience of India’s domestic demand amidst challenging times", said Mr Chandrajit Banerjee, Director General, CII.
The fact that growth is seen across all the sub sectors during October 2009, is a sign pointing towards a widespread recovery and this is essential to sustain industrial recovery and long term growth, CII said.
Now that the growth is recovering from last year’s lows, it is imperative to nurture this momentum until the recovery sustains further, CII added. Any hike in policy rates at this point could affect the recovery, especially in those sectors where consumption and investment are sensitive to interest rate changes, it said.