20 October 2017

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High Industrial Growth Expected in 2010-11

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Small Enterprise India Information Desk

Strong consumption and investment demand are expected to drive industrial growth in 2010-11, economic think-tank the Centre for Monitoring Indian Economy (CMIE) has said in its monthly review.

"We expect industrial production to grow by a buoyant 9.2 per cent in 2010-11. The growth will come on top of a 10.4 per cent growth in industrial production, as measured by the Index of Industrial Production (IIP) in 2009-10," CMIE said.

Though the industry had witnessed a sharp decline in growth in 2008-09 as the global liquidity crisis hit the Indian market in the second half of the year, the industry recovered swiftly from this shock and reported a robust growth in 2009-10.

The acceleration in growth was witnessed across all segments of the industry. The growth in output of the manufacturing sector jumped to 10.9 per cent from 2.7 per cent in 2008-09.

The sharp acceleration in growth was witnessed in spite of a five per cent fall in agricultural crop production, the key input for a number of industries.

Growth in output of mined products and electricity generation also surged to 9.8 per cent and six per cent, respectively from below three per cent in 2009-10, CMIE said.

CMIE expects the industry to continue on its high growth trajectory in 2010-11, backed by a healthy rise in the consumption and the investment demand. The huge capacity additions that are scheduled in 2010-11 and the ones that took place last year are also expected to contribute to the rise in production of steel, aluminium and cement, CMIE said.

The steel sector is scheduled to see a capacity addition of 15.5 million tonnes. This will push up the outstanding capacity in the sector by 21.2 per cent, will be the highest capacity addition in the industry in a single year. CMIE expect the newly commissioned capacity to help the industry scale up steel output in 2010-11, the monthly review said.Similarly, the aluminium sector will see commissioning of the 12.5 lakh tonnes aluminium SEZ of Vedanta in Orissa. This will push up the outstanding capacity in the sector by 67.8 per cent.

 "However, since we expect the project to get commissioned by the gag end of the year, it will lead to a proportionate rise in aluminum production," CMIE said. The power generation capacity in India is also expected to rise by 16,144 MW in 2010-11. The sector saw robust capacity addition of 8,773 MW in 2009-10 as well. These capacity additions and improvement in availability of coal are expected push up thermal power generation.Generation of hydel and nuclear power too will rise because of better rainfall and a likely improvement in availability of uranium. Thus, total electricity generation will rise by 7.2 per cent in 2010-11, CMIE said

Courtesy: DD News

 

 

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