Terming the April 2015 IIP numbers encouraging, apex industry body ASSOCHAM said it is pleased to finally see the green shoots of economic activity getting converted into growth figures for the industry.
"IIP numbers seem to be healthy and encouraging and seem to provide stem to the underlying growth momentum as the industrial activity is showing signs of revival as indicated by the 4.1 percent growth seen in April 2015 over the corresponding month of 2014," said Rana Kapoor, president of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
The manufacturing sector seems to have recorded a better growth rate of 5.1 percent as compared to the 3.0 percent seen in April 2014.
"The turnaround in the manufacturing stands out as the growth in manufacturing sector also augurs well in terms of generation of employment opportunities," said Kapoor.
"The continued subdued performance of the electricity sector in April 2015 as well remains to be a cause of concern," he said.
"In addition slow growth of mining sector also seems to be a cause for some worry that would need the attention and action of the policymakers," said Kapoor.
In terms of the Use based classification, the recovery seems to have stemmed from a strong growth performance seen in the capital goods production," he added.
"Performance of the capital goods sector is also a measure of investment demand," further said Kapoor.
"However, the poor performance of basic goods and slowing down of the intermediate goods sector needs to be looked into going forward," said the ASSOCHAM president.
As for the consumer goods segment finally better growth is seen in both the consumer durables and non-durables segment.
Consumer durables showed a 1.3 percent growth in April 2015 as compared to 7.7 percent negative growth seen in April 2014, whereas, consumer non-durables grew by 4.4 per cent in April 2015 which is better than 2.7 percent contraction recorded in April 2014.
"The reform initiatives taken by the government, which has recently been supported by the monetary easing stance of the RBI, should bring the investment momentum back to the economy," said the ASSOCHAM chief.
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