New Delhi  - India's industrial output rose 2.7 per cent in May, the highest since September, which showed that Asia's third-largest economy was on the path to recovery, officials said Friday.

The index of industrial production (IIP) had expanded by 1.4 per cent in April, signalling early signs of recovery.

Data from the Central Statistical Organization showed manufacturing sector output rose by 2.5 per cent in May while mining and power generation grew 3.7 per cent and
3.3 per cent respectively.

The consumer durables sector posted a high growth rate of 12.4 per cent against 2.8 per cent in May 2008, reflecting the increase in demand.

"The IIP is showing a further improvement ... this is what we were expecting, what we have been saying for some time now and except capital goods and non-consumer durables, the rest are certainly looking much better. I think we are back on track as was expected," Finance Secretary Ashok Chawla said.

He said the trend of growth will continue and the sectors which have seen "slight" negative growth will improve in the coming few months.

Satisfied at the doubling of the industrial growth in May over April, Planning Commission deputy chairman Montek Ahluwalia said the worst of the economic crisis was over but returning to robust growth will take time.

"We do believe that the worst is over. (But) there is a difference between the worst being over and getting back to robust growth."

"The real question is how rapidly we resume growth," he said.

Indian Finance Minister Pranab Mukherjee presented the annual budget earlier in the week, announcing plans to revive growth to 9 per cent and promised more funding for welfare and infrastructure.

The global economic recession slowed India's high growth rate last year to 6.7 per cent, from 9 per cent in the preceding three years.(dpa)