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India: Industrial production hits multi-year high in August

October 12, 2015

In August, industrial production expanded 6.4% compared to the same month last year. The reading was above July’s revised 4.1% increase (previously reported: +4.2% year-on-year) and marked the fastest growth since October 2012. In addition, August’s result overshot market analysts’ expectations of a 5.0% expansion.

August’s upturn was driven by a broad-based improved performance across sectors. Manufacturing production picked up from a 4.6% increase over the same month last year to a 6.9% rise in August—the strongest since October 2012. In addition, mining production increased 3.8% (July: +0.9% yoy) and electricity production accelerated to a 5.6% expansions (July: +3.5% yoy).

On a use-based classification, the figure was driven by a rise in the production of consumer, intermediate and capital goods. However, a weaker performance was recorded in basic goods.

As a result of the strong performance in industrial production, the trend improved in August. Annual average growth in industrial production rose from July’s 2.8% to 3.3% in August.

FocusEconomics panelists expect industrial production to increase 5.5% in fiscal year 2015, which is unchanged from last month’s forecast. For fiscal year 2016, the panel expects industrial output to expand 6.6%.


Author: Angela Bouzanis, Senior Economist

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India Industry August 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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