India Industry September 2016

India

India: Industrial production rebounds in September

Industrial production in India returned to growth in September, after recording contractions for two consecutive months. Industrial output expanded 0.7% compared to the same month last year, which contrasted August’s 0.7% fall. The print overshot market analysts’ expectations of a smaller improvement to a 0.5% increase.

September’s result was driven by chiefly by gains in the manufacturing sector. Manufacturing output swung from a 0.3% contraction in August to a 0.9% expansion in September. In addition, electricity output grew 2.4% after posting meagre growth of 0.1% in August and the fall in mining moderated to a 3.1% decrease (August: -5.6% year-on-year).

On a use-based classification, the production of basic and consumer goods gained steam in September. However, output of intermediate goods slowed, while the contraction in capital goods production moderated.

The trend continued to point downward. Annual average growth in industrial production eased from August’s 0.7% to 0.5%, which represented a 29-month low.

FocusEconomics panelists expect industrial production to increase 5.5% in fiscal year 2016, which is down 0.2 percentage points from last month’s forecast. For fiscal year 2017, the panel expects industrial output to expand 6.5%.


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India Industry September 2016

Note: Year-on-year and annual average variation of industrial production index in %.
Source: Ministry of Statistics and Programme Implementation (MOSPI) and FocusEconomics calculations.


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