INSUBCONTINENT EXCLUSIVE:
Growth in factory output recovered to a three-month high at 3.1 per cent in September as mining and electricity output grew at a robust
pace even as global slowdown and elevated inflation dragged down growth in manufacturing output
This recovery comes after a surprise contraction in August.
Data released by the National Statistical Office (NSO) on Friday showed mining,
manufacturing and electricity sectors grew at 4.6 per cent, 1.8 per cent and 11.6 per cent, respectively.
Compared to pre-Covid levels,
the index of industrial production (IIP) reported a healthy 8.6 per cent expansion in September
It saw a rise in all categories except consumer non-durables.
During the first half (April-September) of FY23, IIP grew 7 per cent against
23.8 per cent during the same period a year ago
support from metals and non-metallic minerals
to use-based industries, capital goods, which is a proxy for investment demand in the economy, grew at a robust 10.3 per cent
Infrastructure goods rose 7.4 per cent due to greater capex push by the government.
However, output in consumer durables (-4.5 per cent)
and consumer non-durables (-7.1 per cent) contracted in September for the second and third consecutive months, respectively
It signals continued weakness in demand in rural as well as urban India.
Rajani Sinha, chief economist at CARE Ratings, said the strong
Hence, poor performance of IIP consumer durables and non-durables is worrisome
ICRA, said high frequency indicators suggest easing of economic activity in October relative to September.
This is owing to the relatively
to sub-2 per cent in October, because of the higher number of holidays compared to October 2021
This is also owing to the early onset of the festive season and flagging external demand, which are likely to have constrained the
It warned of a long and tough economic winter.
Last month, the Reserve Bank of India (RBI) also revised its growth forecast for FY23 to 7
his monetary policy statement.
