IIP re­bounds to 4.3%, re­tail in­fla­tion at 3.28%

Hindustan Times ST (Jaipur) - - World - Asit Ran­jan Mishra asit.m@livemint.com

In­dia’s fac­tory out­put re­bounded grow­ing at 4.3% in Au­gust against growth of 0.9% in the pre­vi­ous month, as man­u­fac­tur­ing sec­tor ex­panded at 3.1% a month af­ter im­ple­men­ta­tion of Goods and Ser­vices Tax (GST).

Re­tail in­fla­tion re­mained un­moved at 3.28% in Septem­ber from its re­vised fig­ure for Au­gust. The pro­vi­sional re­tail in­fla­tion for Au­gust was 3.36%.

The Re­serve Bank of In­dia (RBI) while keep­ing the pol­icy rates un­changed in its lat­est mone­tary pol­icy re­view last week, marginally in­creased the in­fla­tion out­look to 4.2-4.6% for the sec­ond half (Oc­to­ber-March) of the fi­nan­cial year.

RBI pared its eco­nomic growth pro­jec­tion based on gross value added (GVA) to 6.7% for 2017-18 from 7.3% es­ti­mated ear­lier, blam­ing the tepid growth in food­grains pro­duc­tion, ad­verse im­pact of im­ple­men­ta­tion of GST on in­dus­tries and weak con­sumer con­fi­dence.

The In­ter­na­tional Mone­tary Fund (IMF) on Tues­day also cut its growth fore­cast for the In­dian econ­omy by half a per­cent­age point to 6.7% for 2017-18, blam­ing the lin­ger­ing dis­rup­tions caused by de­mon­eti­sa­tion of high value cur­ren­cies last year and the roll out of the GST.

Both the Asian De­vel­op­ment Bank as well as the Or­gan­i­sa­tion for Eco­nomic Co­op­er­a­tion and De­vel­op­ment (OECD) have also cut their growth pro­jec­tions for In­dia to 7% and 6.7%, re­spec­tively, for fis­cal 2017-18.


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