Core sector growth rises to 12.1% in October
The pick up in the index of eight core industries, which constitutes 40% of the index of industrial production, will likely lift IIP growth, which dipped to 5.8% in September, say experts.
“IIP growth for the month would tend to be in the 6-8% range provided support comes from consumer goods where there are mixed pictures being seen in the run up to the festival season,” said Madan Sabnavis, chief economist, Bank of Baroda.
Vehicle sales were up 19% in the 42-day festive season, with two-wheeler sales, an indicator of rural demand, driving growth. Two-wheelers recorded 21% growth, according to Federation of Automobile Dealers Associations (FADA).
The core number further provides support to India’s growth momentum, which was reinforced by second quarter GDP data.
May 2219.3June 2213.1July 224.8August 224.2September 228.3October 220.7November 225.7December 228.3January 20239.7February 20237.4March 20234.2April 20234.6May 20235.2June 20238.4July 20238.5August 202312.5September 20239.2October 202312.1Source — Commerce ministry
The Indian economy grew 7.6% in the second quarter on the back of strong manufacturing and construction activity, leading experts to revise their FY24 forecasts upwards.
Government consumption and gross fixed capital formation both registered double-digit growth in the second quarter.
Reserve Bank of India’s Monetary Policy Committee is likely to hold policy rate at 6.5% for the fifth consecutive time at its meeting next week.
Broad-based recovery
All eight sectors of the index recorded a rise in October, with four of the eight sectors registering double-digit.
Electricity production rose to its highest level of 20.3% in October, double the
