The Finance Ministry's top advisor, Kaushik Basu, today cautioned against over- interpreting industrial growth of over 10 per cent in October, saying next month is likely to see a lower expansion in factory output.
"You must not over-interpret. Next month, the industrial growth is probably going to be lower due to base effect," Basu, the chief economic advisor, told reporters on the sidelines of his lecture at Delhi School of Economics.
The base effect refers to the figures of same period last year. If the figure is high last year, the numbers would look comparatively small. In November last year, industry grew by over 11 per cent.
Industrial output surged 10.8 per cent in October, after slowing down in the previous two months.
Reacting to figures, many analysts said that the trend of slowdown in industrial growth has been reversed.
