This will drive industrial activity, she added.

Maintaining that industrial production was on an upward trend, Chan said: 'Although industrial production appears to have bottomed out, as an upward trend has appeared, a solid recovery may still be a few months away.'

According to her, just as in Japan, 'producers in India may have run down inventories during the early stage of the global turmoil, meaning that the decline in production was steeper than the fall in orders, and the recent rise in production could be a result of businesses rebuilding inventories amid signs of green shoots in the global environment.'