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percent in August, official data showed Monday, which analysts say
could raise pressure on the central bank to hike interest rates. The
strong year-on-year figures came on the back of double-digit growth
in the manufacturing, mining and electricity sectors. Analysts were
expecting a rise in industrial output of close to 10 percent.
Economists said the robust figures could press the central bank to up
rates to control growing inflationary pressures, although most
predict no move before January. India's industrial performance is
expected to help offset the impact on overall economic growth of
monsoon rains, which have been the worst in nearly four decades and
hurt agricultural output, analysts say. The data were the latest in a
series of encouraging figures pointing to recovery in Asia's
third-largest economy. Manufacturing production grew by 10.2 percent
in August, electricity by 10.6 percent and mining by 12.9 percent.
India's economic growth has fallen from the annual nine percent-plus
levels the country logged for several years before the start of the
global financial crisis.
