India's industrial production grew by 7.9% in December 2004 on account of a solid performance of the manufacturing sector against 7.4% in the same month last year. According to data released by the Central Statistical Organisation, the country's industrial output, or Index of Industrial Production (IIP), has expanded 8.4% during the first nine months of the current fiscal year.

The manufacturing sector grew by 8.8% in December 2004 compared to 7.8% during the corresponding month of the previous fiscal year. In the first nine months of the current year, the manufacturing sector was up 9% versus 7.2% in the period between April-December 2003-04.

Textile products (including apparel) clocked the highest growth of 38.2%, followed by paper and paper products and what is classified as other manufacturing industries. On the other hand, wood and wood products, furniture and fixtures registered a negative growth of 12.8% followed by a decline of 6.9% in rubber, plastic, petroleum and coal products and 2.3% in leather and leather and fur products.