India's industrial production to grow by 7.4% in FY13

Mumbai: The country's industrial production is expected to grow by 7.4 percent in fiscal 2013 as against the forecast of 5.1 percent for 2012, Centre for Monitoring Indian Economy (CMIE) said in its monthly review. The industrial production growth stood at 8.2 percent in 2011.

The manufacturing sector is expected to witness a healthy growth of 6.5 percent in fiscal 2013, against forecast of 4.9% in FY 12, CMIE said, reports PTI, adding, this growth would be driven by over 10 percent rise in production of motor vehicles and other transport equipment, machinery, basic metals and wearing apparels India GDP growth.

Rising corporate salaries, increase in rural income, softening of interest rates, improvement in availability of finance, new models and expansion of dealers network could boost passenger cars production by 13.1 percent in FY 13, the report added.

Production of MUVs, two-wheelers and three-wheelers is also expected to grow by around 10 percent. This will lead to higher demand and production in auto ancillary category.

Huge capacity additions in the industrial and infrastructural construction segment and increase in production of automobiles and machinery is also expected to generate higher demand for basic metals in FY 13, CMIE said in a statement.

The mining industry, which saw a stagnation in FY 12, is expected to grow by a healthy 5.6 percent next year.