India’s December industrial output grew at the fastest rate in two decades based on latest official data.
Keep in mind that India has injected its own fair share of stimulus into its economy.
Manufacturing is just 20% of India’s economy, but soaring Indian growth is a reminder that the world has backup emerging market growth drivers beyond China.
Production by the country’s mines, factories and utilities rose 16.8 per cent in December from a year earlier, the best increase since March 1990 and easily outstripping analysts’ forecasts of 12 per cent.
The strong numbers were expected to boost arguments for the government to start rolling back the stimulus measures that helped shield the economy from the worst of the global downturn in the budget due at the end of the month.
The data showed manufacturing rose 18.5 per cent in December from a year earlier while consumer durables production, including cars and appliances, soared by 46 per cent.
“Most of the sectors which had demonstrated their resilience and capacity to grow have further improved,” Commerce Minister Anand Sharma said.