New Delhi, Surpassing expectations, India’s factory output rose sharply by 9.8 percent in October, due mainly to a robust 10.6-percent growth in the manufacturing industry, official data showed on Friday.

The growth decelerated to 3.84 percent in the month before and was placed at (-)2.7 percent in October of last fiscal year.

While the electricity output grew by 9 percent, that in mining was higher by 4.7 percent, according to the official numbers on the Index of Industrial Production (IIP) which were released by the Ministry of Statistics and Programme Implementation.

The Central Statistics Office (CSO), which released the data on the IIP, revised its September and July estimates upwards.

The revised figures for September showed a growth of 3.84 percent from a rise of 3.6, which was published in the “Quick Estimates of IIP” released on November 12, 2015.

In addition, the CSO came out with its final figures for July IIP which reveals a growth of 4.33 percent from a revised estimate of a 4.1 percent rise. released with the data for August IIP.

Cumulatively, the factory output growth was 4.8 percent between April and October, as against 4 percent in the first six months of this fiscal. This was more than double the figure of 2.2 percent logged during the first seven months of the previous fiscal.

On a cumulative-basis, the manufacturing sector swelled by 5.1 percent, while the electricity sector expanded by 5.2 percent. The mining sector’s cumulative output in the period under review edged up by 2 percent.

Friday’s data also showed that among the six use-based classifications of the index, the output of capital goods segment expanded by 16.1 percent in October. The capital goods segment is a key indicator of economic activity.

Besides, healthy production was observed in the consumer durables, which rocketed by 42.2 percent. The output of consumer goods was higher by 18.4 percent.

The basic goods segment rose by 4.1 percent, intermediate goods grew by 6.7 percent, and consumer non-durables segment edged up by 4.7 percent.

Overall, 17 out of the 22 industry groups in the manufacturing sector have shown positive growth during the month under review.

Segment-wise, growth was witnessed in gems and jewellery (372.5 percent), sugar machinery (103.4 percent), telephone instruments (61.5 percent), PVC pipes and tubes (48.5 percent), steel structures (35.5 percent), colour TV sets (34.5 percent), rubber insulated cable (31.3 percent), scooter and mopeds (24.5 percent) and passenger cars (21.4 percent).

Segment-wise, high negative growth was reported in the polythene bags (- 61.8 percent), ship building and repairs (- 46.5 percent), grinding wheels (- 36.3 percent), ready-to-eat (- 29.5 percent), furnace oil (- 25.8 percent) and aviation turbine fuel (- 24 percent).

India Inc. welcomed the substantial rise in the factory output and called for continued push for reform measures to maintain the growth trajectory.

“Though manufacturing registered a high growth in October, but the low base in major sectors like capital goods and consumer durables has contributed significantly to this high growth,” said A. Didar Singh, Secretary General of Federation of Indian Chambers of Commerce and Industry (Ficci).

“Nonetheless, the outlook for growth remains positive and can be strengthened in coming months if pace of reforms continues.”

The Associated Chambers of Commerce and Industry of India (Assocham) said that the industrial growth in October should be considered as a great morale booster for the Indian economy.

According to Assocham president Sunil Kanoria, the growth in capital goods reflects a revival in investment cycle and a robust expansion of electricity generation follows solid improvement in coal production.

Saurabh Sanyal, secretary general of PHD Chamber of Commerce and Industry, noted that growth of consumer goods showed a firming-up trend in demand.

Sanyal added that the growth of manufacturing sector shows that the reform measures undertaken by the government are giving visible outcomes.