Reuters | | Posted by Aryan Prakash
India’s industrial output rose 7.1 per cent in November as compared to the same month in 2021, a Ministry of Statistics Data said.
According to Reuters, analysts had expected a 2.6 per cent increase in November as compared to a contraction of four per cent in the previous month. The industrial output contraction of four per cent in October was its weakest performance in the last 26 months, this after revised growth of 3.5 per cent in September.
India’s central bank had raised its policy rate to 6.25 per cent as part of its move to battle inflation. Sluggish rural spending and rising borrowing costs started hitting consumer demand for durables and impacted manufacturing, which accounts for about 16% of the Indian economy, the Reuters report stated.
Industrial output growth in Asia’s third largest economy has sharply slowed, expanding 5.3% during the April to October period compared to 20.5% a year before.
In October, manufacturing contracted 5.6% year-on-year compared with a 2.2% expansion in the previous month, data released by the Ministry of Statistics on Monday showed.
Mining output rose 2.5%. Consumer durables output shrank more than 15% in the same month, data showed.
Among products, the auto sector grew 12.3%, but electronic goods production contracted 12.3% and apparel manufacturing shrank more than 37% in the same period.
Analysts said that slowing factory output could also hit jobs and private investment was not picking up as reflected in the disappointing performance of capital goods output – which contracted 2.3% year-on-year in October.
For all the latest business News Click Here
