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Mumbai: The factory output growth in August surged to 9-month high of 4.2%, indicating an acceleration of industrial activities after the initial setback due to GST-related destocking much to the delight of the government which is facing criticism over poor handling of the economy.

The consumer price index climbed 3.28 percent year-on-year, same as in August, which was revised from 3.36 percent.

India's economic growth slipped to a three-year low of 5.7 per cent in the first quarter of the current fiscal, leading to calls by the industry for a rate cut.

Aided by a strong show in mining and electricity sectors, factory output growth for August 2017 came in at robust 4.3 per cent.

Ms. Nayar said appreciable strengthening of the industrial growth in August 2017 from the mild 0.94% in July 2017 was on expected lines, as restocking of manufactured items gained steam following the introduction of the GST and prior to the festive season.

The International Monetary Fund (IMF) on Tuesday also cut its growth forecast for the Indian economy by half a percentage point to 6.7% for 2017-18, blaming the lingering disruptions caused by demonetisation of high value currencies previous year and the roll out of the GST.

However, the Reserve Bank at its policy review meeting earlier this month kept the key interest rate unchanged at 6 per cent, citing upward trend in inflation.

The July IIP growth has been revised to 0.9 per cent from 1.2 per cent. The primary goods output is at 7.1 per cent in August, against 2.3 per cent in July, the capital goods output is at 5.4 per cent in August, against -1 per cent in July.

India's annual retail inflation remained static in September with a marginal drop in the food prices, official data showed on Thursday.


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