India's industrial production grew a terrific 7.3% in March 2011, higher than an upwardly revised 3.65% growth a month ago. This could allay fears of a slowdown in the economy that will allow the central bank to continue with rate hikes to control stubbornly high inflation.
For the year (FY11) industrial output grew only 7.8% compared to 10.5% clocked in the previous fiscal.
Venugopal Dhoot, CMD of Videocon, in an interview with CNBC-TV18's Sonia Shenoy and Anuj Singhal, spoke how the IIP numbers would affect his company and what are their growth prospects going forward. Below is the verbatim transcript of the interview. Also watch the accompanying video. Q: What is your initial reaction to this March IIP number which has come in at 7.3%?
A: We feel growth in manufacturing sector. Capital good sector is surprised with the IIP numbers.
Capital good sector has not been doing very well. All of a sudden, we got good news for capital good sector. This is the reason why infrastructure industry is growing in India and people are investing.
The banks are financing and even though the rates are high, people are taking it. The infrastructure industry requires capital goods which is a good sign for the country. The only worry is the consumer durables, which had a cumulative growth of 30% last year month-on-month (MoM), seem to be fallen. Q: This time around, the consumer durables numbers have slipped to 12.3%. What is happening in terms of investment activity? Are you expecting to see a slow down of any sort?
A: No. March is the month of exams for children and there isn
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