India Industry August 2017

India

India: Industrial production growth trends higher in August

October 12, 2017

Industrial output expanded 4.3% annually in August, which follows August’s 0.9% increase and marks the best reading since November of last year. The pick-up reflected a broad-based expansion across sub-components, with mining production and electricity supply growing at faster clips than in the previous month, and manufacturing output bouncing back to strong growth following a dip in August.

Employing a use-based classification, the fastest rates of output growth were seen in the primary and consumer non-durable segments, with consumer durable goods output moving back into positive territory. In addition, the production of capital goods rose for the first time in five months in August, an incipient sign that could suggest a small pick-up in capital expenditure growth.

August’s industrial production figure suggests that economic growth may have bottomed out at the outset of FY 2017, confirming that the negative effects related to the implementation of the Good and Services Tax (GST) were transitory. While the economy is not yet out of the woods, improving manufacturing PMI data and a turnaround in industrial output point to higher economic growth in the July-to-September period.

FocusEconomics panelists expect industrial production to increase 5.3% in fiscal year 2017, which is unchanged from last month’s forecast. For fiscal year 2018, the panel expects industrial output to expand 6.2%.


Author:, Economist

Sample Report

Looking for forecasts related to Industry in India? Download a sample report now.

Download

India Industry Chart


India Industry August 2017

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


India Economic News

More news

Search form