Cheering the rebound in industrial production which grew at nine-month high of 5 per cent in February, India Inc on Friday said the upswing points to the industrial recovery firmly taking root and an impending turnaround in the investment cycle.
The factory output, as measured by the Index of Industrial Production (IIP), had declined by 2 per cent in February 2014. Significant uptick in IIP at 5 per cent growth is encouraging and indicates a visible improvement in the business environment, PHD Chamber President Alok Shriram said.
“The effective implementation of the policy environment will not only improve the growth and competitiveness of the industrial sector, but also push economic growth on high road,” he added.
Assocham President Rana Kapoor termed the IIP numbers for February as “encouraging”. “The recovery seems to have stemmed from a rebound in growth seen in the capital goods production, though, the slow growth of the intermediate goods despite the growth in the capital goods production indicates that revival story is not fully complete,” Kapoor said.