Driven by a surge in manufacturing sector, the Index of Industrial Production is estimated to grow at 7.5 per cent in the current fiscal, according to Centre for Monitoring Indian Economy.
The manufacturing sector is expected to grow at eight per cent in 2005-06. Within this sector, growth of chemicals and chemical products segment is pegged at nine per cent, while index for machinery and equipment would go up by an impressive 12 per cent, CMIE said in its monthly economic review.
Food products, rubber, plastics, petroleum and coal products, non-metallic mineral products are among the major manufacturing industries whose performance would see a significant improvement in 2005-06, the review said.
CMIE said textile industry is expected to continue its buoyant performance, with cotton textile index growing at 10 per cent. Wool, silk, manmade fibre textiles index is likely to show a 6.8 per cent upward growth.
The IIP growth remained robust at 8.1 per cent in April-February 2004-05, compared to 6.9 per cent in the same period of 2003-04, it added.
On the farm sector, CMIE said the prospects for realising 9.5 per cent increase in kharif foodgrain production have brightened due to probability of normal monsoon and hike in minimum support price announced before the onset of sowing.
Agricultural and allied sector is likely to grow at 3.1 per cent in FY-06 against 1.1 per cent in 2004-05, it added.
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