NEW DELHI (TIP): The country’s industrial output rose 4.7% in May on the back of a robust performance by the manufacturing and electricity sectors, bringing relief for the Narendra Modi government, which has vowed to revive the economy. In May 2013, industrial output declined 2.5%. This is the second consecutive month of expansion after output contracted 0.5% in March. The performance in May is the highest since October 2012.

The Modi administration unveiled its Budget for 2014-15 with plans to revive the manufacturing sector and the overall economy. The government has undertaken a series of measures to script a turnaround, including easier approvals and clearing the approvals process. Sluggish industrial growth has hurt overall economic expansion, which slowed to below 5% for two successive years. The government expects growth in the current fiscal year in the 5.4% to 5.9% range.

“With today’s data, the three-month moving average of IP growth has improved to 2.5% in May, from 0.3% in April. Assuming no major disappointment in June, the average IP growth in April-June should be considerably higher than the outturn of the previous two quarters,” Deutsche Bank said in a report.