India’s retail inflation spiked to 6.21% in October, marking a 14-month high and surpassing the Reserve Bank of India’s (RBI) targeted range. This surge, driven by rising food and fuel costs, could lead to tighter monetary measures in the upcoming months.
Meanwhile, India’s Index of Industrial Production (IIP) showed a positive trend, growing by 3.1% in September after a modest 0.1% decline in August. Data from the Ministry of Statistics and Programme Implementation (MoSPI) revealed that key sectors like mining, manufacturing, and electricity saw growth rates of 0.2%, 3.9%, and 0.5%, respectively, signaling a rebound in industrial output.
India’s industrial output grew by 3.1% year-on-year in September, signaling a recovery following a contraction in August. The primary driver of this growth was a rebound in manufacturing, which saw a 3.9% increase.
Sector-wise Performance
Manufacturing output jumped 3.9% in September, while electricity generation grew by 0.5%, and mining activity showed a modest rise of 0.2%.
However, these sectors had posted stronger growth in September 2023: 5.1% in manufacturing, 9.9% in electricity, and 11.5% in mining.
Overall Growth Trends
For the April-September period, industrial production increased by 4%, which was slower than the revised 6.2% growth recorded during the same period in 2023.
Shashi Rai
