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The industrial sector has been settled on the right track by the new initiative taken up by the Modi government and lessened impact of fuel prices, availability of energy. The industrial growth is now at 9-month of 5 per cent in February as the manufacturing sector which constitutes 75 percent of the IIP.

Capital inflows and higher offtake of consumer also encouraged the business. The manufacturing sector grew by 5.2 per cent in February against a decline of 3.9 per cent at the corresponding time last year, as per the data released by Central Statistics Office (CSO) on Friday. The capital goods and consumer goods also showed positive records (rates) with 8.8 per cent and 5.2 per cent, respectively.

In February 2014 the factory output had registered a decline of 2 per cent, while in February 2015 grew by 5.6 per cent highest since May 2014. CII President Sumit Mazumder said, “Rates are much above market expectations, point to the industrial recovery firmly taking root and an impending turnaround in the investment cycle.”

The IIP in April-February period of 2014-15 grew 2.8 per cent against the decline of 0.1 per cent in corresponding period in the previous financial year. 15 out of the 22 industry groups in the manufacturing sector have shown positive growth during the month of February year-on-year.

The reforms and the government’s commitment are to be credited for the positive report and the manufacturing sector should accelerate the employment also.

-Kannamsai