The latest data is surely a good sign for the new Government which is looking to revive the jobs-creating manufacturing sector. Manufacturing, the back bone of the index, grew 2.6% in April against 1.8 % in the same month last year.
"We look forward to some big ticket measures by the Government in its forthcoming budget which could send strong signals to investors and restore their confidence in the economy", said Mr Sidharth Birla, President, FICCI.
The production of capital goods growing 15.7% against a contraction of 0.3% in April 2013 has helped to improve the business sentiment during the month. The mining sector witnessed a growth of 1.2% against a 3.4 % contraction in April 2013 and power generation increased 11.9% against 4.2% in the same month of 2013.
But consumer sentiment continued to remain dimmed as consumer goods output shrunk 5.1% in April against 1.7% growth a year ago. And consumer durables also contracted 7.6%, though the decline was lower than the 9.6% dip in April 2013.
Consumers non-durables production also declined by 3.3% against a growth of 11.3% in April last year.
The official release said that the Electrical Machinery and Apparatus sector showed the sharpest positive growth i.e 66.0% followed by Machinery and Equipment(9.6%) and Tobacco products(9.1%). On the other hand Radio, TV and Communication Equipment had showed the steepest negative growth(-31.6%) followed by Wearing Apparel, Dressing and Dyeing of Fur(-22.1%), and Motor Vehicles, Trailers and Semi-trailers (-14.6%).
“What is encouraging is that all the three major segments of industry viz mining, manufacturing and electricity have posted positive growth. The double digit growth of capital goods could mark a beginning of an upturn in investments backed by an improvement in business sentiments and fast clearances of stalled projects. Going forward, CII expects that quick and proactive government policies would return the ‘feel good’ factor and firm up growth,” said Banerjee.