Jan industrial output up 11

Manufacturing accounts for nearly 15 per cent of GDP and in January increased 11.6 per cent from a year earlier. The strong pace is likely to raise concerns for policy makers both in the government and the central bank, who have been trying to douse it.

The RBI will review monetary policy in April.

Data on Friday showed annual inflation at 6.10 per cent in late February, above the central bank8217;s target range of 5.0 to 5.5 per cent for the end of March.

8220;Clearly there is a domestic consumption trend that is strong, which should be worrisome from an inflationary perspective, especially manufacturing inflation,8221; said Harish Menon, economist with ING Vysya Bank.