Industrial production recorded 4.7 per cent growth in May 2014, a nineteen-month high. This was powered by improved performance across sectors, including manufacturing, mining and power.

A low base for comparison also helped push up the growth figures as industrial production in May last year had contracted by 2.5 per cent. The Index of Industrial Production (IIP) for the April-May 2014 period grew by 4 per cent over the comparable period last year, according to data released by the by the Central Statistics Office (CSO) on Friday.

IIP in April-May 2013 had contracted by 0.5 per cent.

Basic goods, capital goods and consumer goods also posted growth under the use-based classification of industrial performance.

“The rise in industrial production for the second month in a row provides a glimmer of hope that the economy could be bottoming out and recovery could be on the anvil,” CII Director-General Chandrajit Banerjee said.

The double-digit growth in exports posted in May after dismal performance last fiscal also contributed to growth, Banerjee added.

The manufacturing sector, which accounts for over 75 per cent of the index, grew by 4.8 per cent in May this year. The sector had contracted 3.5 per cent in May last year.

The mining sector, which comprises 14.6 per cent of the IIP, grew by 2.7 per cent in May as against a contraction of 5.9 per a year ago.

The power sector, which has the lowest weight of 10.32 per cent, grew the most at 6.3 per cent in May despite a high base as the sector had posted a strong growth of 6.2 per cent last May.

The cumulative growth in the manufacturing, mining and power sectors during April-May 2014-15 over the corresponding period of 2013-14 has been 2.6 per cent, 3.7 per cent and 9 per cent respectively.

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