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Industrial production grows 4.3% in August'17

Industrial production grows 4.3% in August'17

The September CPI stands at 3.28 per cent, against 3.23 per cent registered in August, CPI rural inflation is at 3.15 percent against 3.22 percent in August, CPI urban inflation stands at 3.44 percent against 3.35 percent in August, CPI core inflation is at 4.6 percent against 4.5 percent posted in August.

Industrial production, as represented by Index of Industrial Production (IIP) for the month of August 2017 stands at 121.5, which is 4.3 percent higher as compared to the level in the month of August 2016. Retail inflation stood at 4.31 per cent in September, 2016. Morgan Stanley expects CPI inflation to rise further to 3.8%, inching closer to Reserve bank of India's (RBI) inflation target of 4%, while WPI inflation may inch up to 3.4% in September from 3.2% in August, largely driven by higher oil prices.

Primary goods' production grew sharply at 7.1 percent in August as compared with 2.3 percent jump last month. She added, "Encouragingly, the sequential improvement in industrial growth in August 2017 was broad-based, led by all three sectors (mining, manufacturing and electricity) and five of the six use-based industries (except infrastructure/construction goods). A rate cut of 25 bps can be expected in Q4 provided inflation remains below 4%".

The government today revised July's factory output growth to 0.9 percent in July, as compared with an earlier estimate of 1.2 percent.

In terms of industries, 10 out of 23 industry groups in the manufacturing sector showed positive growth during August 2017.

India's consumer price inflation numbers remained steady in September while industrial production rose favourably.