India’s Industrial output grew by whopping 16.8% year-on-year in December as  compared to -0.2% recorded in December last year.  The industrial production registered growth with driving force of an 82.2 per cent jump in the automobile sector output, a 44.6 per cent increase in capital goods production and a 29.0 per cent rise in chemicals production.

Commerce & Industry minister Anand Sharma said, “Most of the sectors which had demonstrated their resilience and capacity to grow have further improved".

The current growth in industrial production is the highest in the last two decades. As many as fourteen out of the seventeen industry groups have shown positive growth during December 2009 compared with the corresponding month of the previous year. The outstanding results fuel the hopes of clocking a higher GDP growth rate than the estimated 7.2%.

Planning Commission Deputy Chairman Montek Singh Ahluwalia said, "I hope that we are well positioned for next year that is fiscal year 2010-11 to have a GDP growth of over 8 per cent". In the Feb. 26 annual budget, the government may rollback fiscal stimulus considering strong signs of economic recovery.