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India: Growth in industrial production edges down from multi-year high in September

November 13, 2015

In September, industrial production expanded 3.6% compared to the same month last year. The reading was below August’s revised 6.3% increase (previously reported: +6.4% year-on-year), which had marked a multi-year high. In addition, September’s result undershot market analysts’ expectations of a 5.0% expansion.

September’s dip was driven by slower growth in the manufacturing and mining sectors. Manufacturing production lost steam, declining from a 6.6% increase over the same month last year in August to a 2.6% rise in September. In addition, mining production slowed to 3.0% growth (August: +3.8% yoy). However, electricity production recorded its best result in almost a year, accelerating to a 11.4% expansion (August: +5.6% yoy).

On a use-based classification, the slowdown was driven by weaker growth in the production of capital, intermediate and consumer goods. However, basic goods recorded a larger rise than in August.

Despite the softer growth in industrial production, the trend remained unchanged in September. Annual average growth in industrial production stabilized at August’s 3.3%.

FocusEconomics panelists expect industrial production to increase 5.5% in fiscal year 2015, which is up 0.1 percentage points from last month’s forecast. For fiscal year 2016, the panel expects industrial output to expand 6.4%.


Author: Angela Bouzanis, Senior Economist

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India Industry September 2015

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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