India’s industrial production growth rose to a 14-month high of 10.3% in August, mainly due to good show by the manufacturing, mining and power sectors, according to the official data released on October 12. The factory output growth measured in terms of the Index of Industrial Production (IIP) had contracted by 0.7% in August 2022.
The previous high was recorded at 12.6% growth in June 2022. The IIP growth for July has been revised to 6% from 5.7% provisional estimates released last month.
During April-August 2023-24, the IIP growth works out to be 6.1%, down from 7.7% in the corresponding period a year ago. “The growth rates over the corresponding period of the previous year are to be interpreted, considering the unusual circumstances on account of the Covid pandemic since March 2020,” an official statement said.
As per the IIP data released by the National Statistical Office (NSO), the manufacturing sector’s output grew 9.3% in August 2023 against a contraction of 0.5% a year ago.
Power generation rose 15.3% in August 2023 compared to 1.4% in the year-ago period. Mining output rose by 12.3% during the month under review against a 3.9% contraction a year ago.
India’s inflation eases to 5.02% in September
Retail inflation declined to a three-month low of 5.02% in September, mainly due to easing of food prices, according to the government data released on Thursday, October 12.
The inflation has come back to the Reserve Bank’s comfort level of below 6% after a gap of two months. The inflation based on the consumer price index (CPI) was 6.83% in August and 7.41% in September 2022.
The previous low was in June this year when the reading stood at 4.87%.
According to the data released by the National Statistical Office (NSO), the inflation in the food basket came down to 6.56% in September from 9.94% in the preceding month.
The Reserve Bank of India mainly factors in retail inflation while arriving at its bi-monthly monetary policy.