Page last updated at 11:25 GMT, Friday, 12 June 2009 12:25 UK

Indian factory output up in April

Indian labourers in Mumbai
There are fresh hopes the Indian economy could be recovering

India's industrial output rose unexpectedly in April, driven by a rise in domestic demand, fuelling hopes that a recovery may be in sight.

Output rose 1.4% from a year earlier, after a 0.8% fall in March, and better than a forecast fall of 0.2%.

Before the April rise, industrial output had fallen in three of the four previous months.

Stock markets around the world have been buoyed in recent days by a string of positive data.

Sales and jobs data from the US on Thursday added to hopes that the global economy may be recovering.

"[Indian] output growth almost certainly bottomed on a year-on-year basis in March and we are looking for a healthy upward trend to develop from here," said Robert Prior-Wandesforde, an economist at HSBC.

"It also fits in with our theory that the rebound in industrial production is due to domestic demand, the same case as with China," he said.

Nikhilesh Bhattacharyya, an analyst at Moody's, said: "Demand for the industrial sector's consumer goods appears to remain weak, but this has been offset by government infrastructure and construction projects."

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