In September, industrial output increased a paltry 1.9% over the same month last year, according to the so-called quick estimate for the index of industrial production (IIP). The subdued print undershot market expectations of a 3.5% increase and marked the slowest pace in two years. The slowdown was broad-based. Growth in the manufacturing sector stepped down from 4.0% in August to 2.1% in September, while the mining sector posted an outright contraction of 5.6% (August: -4.1% year-on-year). Output in the electricity sector also slowed over the previous month. On a use-based classification, the deterioration was mostly the result of a decline in the production of capital goods, which contracted 6.8% (August: +4.0% yoy). In contrast, growth in the production of consumer goods rose from 2.2% in August to 3.5% in September, which was the result of an expansion in consumer durables that more than offset a contraction in non-durables. Owing to the subdued reading, the trend in industrial production began to deteriorate, with annual average growth falling from 7.0% in August to 6.7% in September
Industrial production grows at slowest pace in two years
November 12, 2011
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India Economic News
October 17, 2016
Recently-released data related to India’s external sector showed that the trade deficit totaled USD 8.3 billion in September, which was a smaller shortfall than the USD 10.2 billion gap recorded in September 2015 (August 2016: USD 7.7 billion deficit).
October 15, 2016
In September, consumer prices fell 0.23% from the previous month, which followed August’s flat growth.
October 12, 2016
The fall in industrial production moderated in August, after recording the largest contraction since November 2015 in July.
October 5, 2016
Activity in India’s manufacturing sector lost steam in September.
October 4, 2016
The newly facelifted Reserve Bank of India (RBI) decided to ease monetary policy at a scheduled meeting on 4 October, cutting the repurchase rate from 6.50% to 6.25%—an over five-year low.