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NEW DELHI: Industrial production growth accelerated to a nearthree-year high in August on the back of robust manufacturing, providing evidence of a pickup in the economy with nascent signs of recovery in investment.
The Index of Industrial Production (IIP) rose 6.4% in August, compared with 4.1% in July and 0.5% in August last year, data from the statistics office showed on Monday. Industrial output grew faster last in October 2012, when it was 8.4%. For a government that faced criticism of late for a slowdown in reforms, causing recovery to remain patchy, the latest data will provide some cheer.
"Industrial growth in August 2015 surpassed our expectation, led by the double-digit expansion in capital goods and consumer durables, both of which benefited from a favorable base effect," said Aditi Nayar, senior economist at ratings firm ICRA.
India's economic growth slowed to 7% in the April-June quarter from 7.5% the previous quarter, but firmer industrial output numbers in the last three months provide evidence of a change in the trend. "There are indeed signs of growth revival, among them tax collections and commercial vehicle sales," said Saugata Bhattacharya, chief economist at Axis Bank. She expects GDP to grow 7.5% this fiscal year.
source-economic times
The Index of Industrial Production (IIP) rose 6.4% in August, compared with 4.1% in July and 0.5% in August last year, data from the statistics office showed on Monday. Industrial output grew faster last in October 2012, when it was 8.4%. For a government that faced criticism of late for a slowdown in reforms, causing recovery to remain patchy, the latest data will provide some cheer.
"Industrial growth in August 2015 surpassed our expectation, led by the double-digit expansion in capital goods and consumer durables, both of which benefited from a favorable base effect," said Aditi Nayar, senior economist at ratings firm ICRA.
India's economic growth slowed to 7% in the April-June quarter from 7.5% the previous quarter, but firmer industrial output numbers in the last three months provide evidence of a change in the trend. "There are indeed signs of growth revival, among them tax collections and commercial vehicle sales," said Saugata Bhattacharya, chief economist at Axis Bank. She expects GDP to grow 7.5% this fiscal year.
source-economic times
