1. Double bonanza for economy: Macros improve as inflation down, factory output up

Double bonanza for economy: Macros improve as inflation down, factory output up

Industrial production has made a remarkable growth at 4.3% defying slowdown from previous month's 1.2%.

By: | Updated: October 12, 2017 6:33 PM
rbi, Economic slowdown, narendra modi, economic growth, Urjit Patel, rbi governor Urjit Patel, india, india growth, reserve bank of india, rbi monetory policy Industrial production has made a remarkable growth at 4.3% defying slowdown from previous month’s 1.2%. (Image: Reuters)

It is a twin bonanza for the economy as the Consumer Price Index (CPI) for September has gone down and the industrial production for July has made a remarkable growth defying slowdown from the previous month. The CPI Inflation for September was recorded 3.28%, down from previous month’s 3.36% mainly due to fall in food prices post monsoon.

The industrial production, which grew a meagre 1.2%, bearing the brunt of a dismal show of the manufacturing sector, made a remarkable comeback at 4.3%. Both CPI and IIP defied conservative predictions, including ET Now’s, which had predicted CPI to rise 3.4% and IIP to rise 2.5%. However, the with August’s industrial production at 4.3%, it is inching towards 4.5% growth in July last year.

The mining sector in August grew  9.4% as compared to 4.8% in July, while manufacturing sector grew 3.1% as compared to 0.1% in the previous month. The electricity sector also rose with its output at 8.3% as compared to  6.5% in July. Primary goods output was 7.1%, up from 2.3% in July. Capital goods output grew 5.4% from -1% in the previous month.

In August, the inflation accelerated to 3.36% on the back of a surge in food prices during the period. The Reserve Bank of India kept the repo rate unchanged last at 6% in its latest credit and monetary policy review, given the predictions of rising headline inflation. The central bank kept the policy stance neutral with the objective of limiting the medium-term target for CPI of 4% within a band of plus/minus 2%, while supporting growth.The lower inflation may now put pressure on the RBI to cut rates in its next monetary policy meeting.

The CPI food inflation fell to 1.25% in September from 1.52% in August. However, CPI fuel and light inflation grew 5.56% as compared to 4.94% in August, and CPI clothing & footwear at 4.63% as compared to 4.58% in August. While the CPI rural inflation has gone down from 3.22% in August to 3.15% in September, the urban inflation has gone up from 3.35% in August to 3.44% in September.

  1. A
    anil
    Oct 13, 2017 at 9:50 am
    Oh please.... CPI has gone down... ok in pure statistical calculations maybe. These guys making the numbers live in ivory towers. Step out into the real world and look at prices of vegetables, etc. Gasoline prices were jacked up to a point where it became unbearable and then a ₹2 relief.Wake up and smell the coffee.
    Reply
    1. P
      Palengri
      Oct 12, 2017 at 9:30 pm
      I doubt whether Mr. Yashwant Sinha will accept this figures!!!
      Reply
      1. G
        gsbuch
        Oct 12, 2017 at 7:00 pm
        Mom Sonia will tell Beta Rahul that how can there be double bonanza to Modi Government inspite of your best but sterile efforts to propagate against Modi? Sonia should ask Rahul to double up in uttering lies such as "water for farmers have been given away to four five industrialists" Rahul, will you say, which water?
        Reply
        1. N
          Nakash
          Oct 13, 2017 at 10:18 am
          And he Bhakti One que to u Do u not suffer from policies Stupid ones Have courage n keep heart to accept the truth Don’t just follow blindly We r going behind bcz of utter mistakes done by pmo in few months N now don’t sing alaap that 60 yrs nothing has been done If u have such view then plz watch wat Sushma Swaraj saif in united nation recently I tell u which water Last year Maharashtra north region having water shortage for irrigation n our beloved cm Fadnavis wanna visit there n for that he uses helicopter N to make helipad they used million let’s of water Isn’t that stupid He could have used rail or road to visit Stop blaming last regime they were successful in keeping commodity prices to low n that’s why ppl survived n now ppl like u n me finding it difficult to manage Open n see videos showing true face of jumps party n ien open ur eyes
          Reply
        2. M
          MK
          Oct 12, 2017 at 6:47 pm
          Why is this report silent about its source from where it got the information?
          Reply

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