Industrial output rose by a robust 16.8% in December as against a rise of 11.7 % in November. IIP December numbers were way above estimates as the industry grew by 8.6% in the first nine months of this fiscal. Most of the analysts expect IIP around 12.3%. Industrial production surged by a stunning 16.8 per cent in December 2009, against the contraction of 0.2 per cent in the same month a year ago, driven by a robust performance by the manufacturing sector, particularly consumer durables.
December 2009 manufacturing growth was at 18.5%. The robust figure, ahead of the February 26 annual budget, could allow the government, fighting a 16-year high fiscal deficit, to cut the deficit by phasing out fiscal stimulus. Besides, mining grew by 9.5 per cent against 2.2 per cent and electricity generation by 5.4 per cent against 1.6 per cent
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