Buoyed by the upbeat performance of the manufacturing sector, including metals, Centre for Monitoring Indian Economy on Monday raised the forecast for industrial production growth in the current fiscal to 7.25 per cent over earlier estimate of seven per cent.
Major sectors have performed well in the first half. The Index of Industrial Production is expected to grow at 7.25 per cent for 2004-05, an upward revision of 0.25 per cent over earlier projection, CMIE said in its monthly economic review.
The index of industrial production grew by healthy 7.9 per cent in April-September 2004 as compared to 6.2 per cent in the same period in 2003, it said.
The industry grew by a whopping 10.1 per cent in October 2004, according to government data.
The manufacturing activity was also likely to show better performance and its growth forecast is raised to 7.75 per cent as against earlier 7.6 per cent for FY-05, CMIE said.
The economic think-tank said the revision was warranted by better than expected performance by jute, textiles, metal products and electricity sectors.
The metal products group showed a healthy growth of 6.4 per cent in the first half of current fiscal as against meagre 0.6 per cent in the same peirod of 2003-04, it said.
This sector (metal products) is expected to grow by seven per cent in the current fiscal ending March 2005 than earlier forecast of two per cent, it added.