Industrial output rises 0.7 per cent year-on-year in September

NEW DELHI: India’s industrial growth rose 0.7% in September, after falling for two consecutive months. Woollen carpets, ship building and ready to eat food made industrial output inch up slightly in the month.

Data released by the statistics office on Friday showed a 0.9% increase in manufacturing production in September and a 3.1% fall in mining output. Manufacturing as a sector has the highest weight in the Index of Industrial Production (IIP). The pace of electricity generation improved 2.4%.

In the first six months of 2016-17, mining output was flat while manufacturing has contracted 0.8%.

August IIP reading was revised to a 0.99% decline compared with the 0.7% decline reported earlier.

Capital goods output nosedived 21.6% in September. It has been falling for the last few months.

The improved pace of industrial activity was evident in 12 out of the 22 industry groups in the manufacturing sector in September.

Consumer goods production rose 6% in September with the output of consumer non-durables — an indicator of rural demand – rising a mere 0.1% and that of consumer durables, a gauge of urban demand, rising 14%.