New Delhi: Some signs of improvement are visible in the economy now, with factory output growth rebounding to 13-month high of 3.4 percent in April and retail inflation easing to 8.23 percent in May on account of falling prices of essential food items.
The Index of Industrial Production (IIP) surged in April after contracting for two consecutive months, mainly due to better performance of manufacturing, mining and power sectors and higher output of capital goods. The previous high of 3.5 percent was recorded in March, 2013.
As regards inflation, subdued prices of vegetables, cereals and dairy products pulled down the Consumer Price Index (CPI) to three-month low of 8.28 percent in May.
Commenting on data released on Thursday, CII Director General Chandrajit Banerjee said: "The return of industrial growth to the positive terrain is noteworthy and has rekindled the hope of industrial recovery which is critical to lift the economy and mark a return to the path of growth."
Manufacturing, which constitutes over 75 percent of the index, grew 2.6 percent in April compared to a growth of 1.8 percent a year ago.
Production of capital goods, a barometer of demand, grew by 15.7 percent in April in sharp contrast to a contraction in output by 0.3 percent in same month last year.
The mining sector grew by 1.2 percent in April as against a dip of 3.4 per a year earlier.
Power generation increased by 11.9 percent in the month as compared to 4.2 percent in April, 2013.
The IIP showed growth of 1.5 percent in April, 2013.
In March this year, the growth in output contracted by 0.5 percent after revision of the provisional estimates.
Overall, 14 of the 22 industry groups in manufacturing showed a positive growth in April.
The IIP in 2013-14 has declined by 0.1 percent mainly due to poor performance of manufacturing sector. In 2012-13, it registered a meagre expansion of 1.1 percent.
