Small BusinessIndustry to grow at 7% plus in Aug, near 9% in Oct: IEG
With the economy showing signs of recovery, industry would pick up further momentum with a growth of more than seven per cent in August and nearly nine per cent in October, economic think-tank Institute of Economic Growth (IEG) today projected.
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The IEG also expected banks prime lending rates to decline to below 11 per cent in next few months which would further spur industry growth.
"The Index for Industrial Production (IIP) has shown an impressive growth of 6.8 per cent (in July). This figure was slightly higher than the last year"s growth. It is definitely a pointer towards the revival of industrial growth," the IEG said in its monthly monitor for the economy.
In fact, based on the available information we forecast the IIP growth rate for the next three months to be 7.08 per cent, 7.7 per cent and 8.9 per cent for August, September and October respectively.
The government will come out with its industrial production data for August on October 12.
After reversing a trend of industrial slowdown since the collapse of Lehman Brothers in the middle of September, industry grew by 8.2 per cent in June over the same month last year.