IIP rebounds to 4.3%, retail inflation at 3.28%
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.