IIP rises 6.4 per cent, fastest in three years

The inflation in cereals and products was higher at 1.38 per cent

New Delhi: India’s industrial production grew fastest in 36 months at 6.4 per cent in August led by strong performance by manufacturing and capital goods. On the other hand, while retail inflation jumped 4.41 per cent in September from 3.74 per cent in August due to costlier food prices and pulses, it still remained within RBI's comfort zone.

Industrial production had grown by 0.5 per cent in August last year. Encouragingly, manufacturing sector, which constitutes over 75 per cent of the index, grew by 6.9 per cent in August, 2015 against a contraction of 1.1 per cent in the same month last year.

The mining sector growth was at 3.8 per cent in August against 1.2 per cent in the same month last fiscal. The output of capital goods, a barometer of investment, grew at an impressive rate of 21.8 per cent as against a contraction of 10 per cent in the same month last year.

In terms of industries, 15 out of 22 groups in the manufacturing sector showed positive growth in August. According to the data, overall consumer goods output grew by 6.8 per cent in August as compared to a contraction of 6.2 per cent in the same month a year ago.

“Encouraging news on Indian economy. IIP growth increased to 6.4 per cent, consistent with indirect tax revenue performance. Core inflation moderate,” said chief economic advisor Arvind Subramanian. Retail inflation data showed that food inflation rose to 3.88 per cent from 2.20 per cent in August.

( Source : deccan chronicle )
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