June Manufacturing Output Surges In India

NEW DELHI (AP) - India's industrial production expanded by 9.6 percent in June, taking the fiscal year's first quarter growth to 10.1 percent, the government said Friday, suggesting the momentum seen in the past year was continuing.

Among industries, manufacturing output grew 11.2 percent in June compared with 13.2 percent in the same month a year ago. Mining production expanded 4.3 percent in June from last year, while electricity generation was up 7.7 percent.

India has averaged 8.1 percent annual growth over the past three years, making it one of the fastest-growing economies in the world.

The growth measured in June came on the back of sustained domestic demand and a surge in exports, although many had feared rising oil prices and interest rates could slow the economy.

Analysts said the industrial sector will likely sustain this strong growth given the huge investments businesses have made in expanding production capacities in recent months. As the new capacities are put to use, industrial growth could even accelerate in the coming months, said Mahesh Vyas at the Center for Monitoring Indian Economy, a leading private forecasting agency.

The impressive growth in industrial output, coupled with prospects of a good agricultural harvest because of timely rains, will likely help the broader economy maintain the momentum seen in recent years.

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