India's industrial production grew more than 10 percent for a sixth straight month in March, adding to inflation pressures even as Europe's debt crisis threatens to undermine the global economic recovery. Output at factories, utilities and mines rose 13.5 percent in March from a year earlier after gaining 15.1 percent in February, the statistics department said in a statement in New Delhi Wednesday. The median estimate of 24 economists in a Bloomberg News survey was for a 15.1 percent increase. The risks to global economic expansion has prompted Reserve Bank of India Governor Duvvuri Subbarao to say he will raise interest rates in a 'calibrated' manner to curb inflation. The approach is now winning the support of economists such as Kotak Securities's Mridul Saggar, who had said earlier that the central bank isn't aggressive enough in slowing inflation, which accelerated to 9.9 percent in March. 'The developments in Europe have vindicated the RBI's approach of gradualism in monetary tightening, something which economists like us were worried about as growth had recovered very strongly in the Indian economy,' Saggar said. 'We still expect a further rate hike of 25 basis points or more in July.' European policy makers on May 10 unveiled an unprecedented loan package worth almost $1 trillion and a program of bond purchases to contain a sovereign-debt crisis emanating from Greece. While the developments in Europe may have limited impact on India, policy makers are carefully monitoring the situation, Commerce and Industry Minister Anand Sharma said Monday. Subbarao on April 20 raised the central bank's benchmark interest rates by a quarter percentage point for the second time in a month, increasing the reverse repurchase rate to 3.75 percent and the repurchase rate to 5.25 percent. The next monetary policy statement is scheduled for release on July 27. Factory output is gaining strength in India as wages rise, spurring demand for houses and cars. Salaries in India may grow at the fastest pace in the Asia Pacific this year, according to Hewitt Associates Inc., the Lincolnshire, Ill.-based human resources adviser. India's $1.2 trillion economy may have grown 8.6 percent last quarter, the fastest pace in more than two years, Kaushik Basu, the chief economic adviser in the finance ministry, said on May 4. Faster economic expansion has helped the benchmark Sensitive Index to gain more than 40 percent on the Bombay Stock Exchange in the past year, and the rupee to advance 8.5 percent during the period. The yield on the key 10-year government bond has advanced 39 basis points to 7.96 percent since Jan. 1 as demand outstrips supply, stoking inflation. Prime Minister Manmohan Singh's coalition is under pressure to control rising prices. Inflation provoked opposition parties including the Bharatiya Janata Party to move a motion in parliament this month, challenging the government to prove its majority. Singh defeated the motion after receiving support from regional parties. 