Factory output rose 5 per cent in September 2016 and 4.5 per cent in August this year, data released by the Central Statistics Office (CSO) showed today.
According to the data, IIP grew at a meagre 2.5 per cent in April-September this fiscal compared to 5.8 per cent in the first half of 2016-17.
In September, growth in the manufacturing sector, which accounts for 77.63 per cent of the index, slowed to 3.4 per cent, from 5.8 per cent a year earlier. During April- September, manufacturing grew at 1.9 per cent, down from 6.1 per cent in the same period last fiscal.
Electricity generation growth slipped to 3.4 per cent in September compared to 5.1 per cent a year before. However, mining recorded a growth of 7.9 per cent in the month under review as against a contraction of 1.2 per cent a year ago.
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Rating agency Crisil said that although capital goods grew by 7.4 per cent in September, "it is on a very low base, so it may be premature to suggest a revival in investment activity.
"Consumer non-durables continued to march ahead, growing 10 per cent, which suggests buoyant rural demand. Durables, on the other hand, de-grew (-4.8 per cent), reflecting to some extent still fragile urban demand."
In terms of industries, 11 out of 23 industry groups in the manufacturing sector have shown positive growth in September 2017 as against the previous year.
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