Growth in India’s industrial output rebounded to 3.1% in September, recovering from a 0.1% contraction in the previous month. The recovery was largely driven by improvement in the manufacturing sector. Additionally, marginal growth in the mining and electricity output, reversing from a contraction in the prior month, boded well for the IIP rebound.
The output of consumer durable and non-durable goods increased by 6.5% and 2%, respectively. However, the performance of consumption-related segments requires close monitoring given signs of softening urban demand. Infrastructure and construction goods output grew by 3.3% in September (Vs 2.2% last month) aiding the overall IIP growth.
The IIP growth for the first half of the current fiscal year was seen at 4% (y-o-y) compared to 6.3% in the same period last year. Going ahead, durable and broad-based consumption improvement along with an investment pick-up remain critical for the industrial growth.
