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Last Updated: Friday, 12 January 2007, 10:40 GMT
Indian industrial output rebounds
GM India plant at Halol
Manufacturing has helped to drive the economy
Industrial production in India grew at its fastest annual rate in more than a decade in November, spurred by capital and consumer goods, figures show.

India's industrial production, including output from factories and mines, rose 14.4% year-on-year, the Commerce and Industry Minister said.

November's rise came as the government revised October's annual growth figure downwards to 4.4% from 6.2%.

Analysts say November's figures make an interest rate rise more likely.

Rebound

Harish Menon, an economist with ING Vysya Bank said the figures were better than expected and "make the chances of a rate hike increase definitely".

Capital goods - which include machines, equipment and factories - saw a 25.3% year-on-year rise in November.

"Clearly the manufacturing sector's strength has rebounded after the aberration of October," said Shubhada Rao, chief economist of Yes Bank.

Manufacturing production, which accounts for some 75% of industrial output, was just under 16% higher in November compared with a year earlier.

Industrial production represents about a quarter of India's economic growth.


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