India's August Industrial Production rises 4.3%

Double boost for economy Industrial output growth rebounds inflation cools

Double boost for economy Industrial output growth rebounds inflation cools

Manufacturing sector, which constitutes over 77 percent of the index, showed a growth of 3.1 percent in August as compared to a growth of 5.5 percent in the same month a year ago.

Retail inflation for the month of September remained flat at 3.28 per cent, after the August figure was revised to 3.28 per cent, government data showed on Thursday.

In a boost to the economy, the factory output growth in August surged to 9-month high of 4.2 per cent, indicating an acceleration of industrial activities after the initial setback due to GST-related destocking. Last year, consumer inflation rose by 4.39 per cent in the month of September. Rate of price rise in pulses continued with deflationary trend at (-) 22.51 per cent and eggs prices fell by 0.15 per cent.

After registering a 48-month low in June, industrial output in the country had managed to rise by 0.9 per cent year on year in July.

The industry group "Manufacture of computer, electronic and optical products" has shown the highest positive growth of 24.9% followed by 16.5% in "Manufacture of pharmaceuticals, medicinal chemical and botanical products" and 11.1% in "Manufacture of other transport equipment".

Fuel inflation stood at 5.56 percent in September, while housing inflation stood at 6.10 per cent. Inflation not easing further dampens hopes of India Inc for interest rate cuts.

The benchmark consumer-price index rose 3.28% from a year earlier, the same pace as in August.