FACTORY GROWTH, INFLATION TO GO HIGHER

New Delhi, Oct. 11: India’s industrial growth and inflation may trend up as key metrics such as IIP, CPI and WPI are expected to come in higher, driven by a waning GST impact and higher commodity rates, says a Morgan Stanley report.

According to the global financial services major, August industrial production (IIP) may improve as GST-related impact would wane. Moreover, export growth is expected to stay strong in September.

Morgan Stanley

in a media interaction when asked to comment on lowering of growth projections by international multilateral lending agencies.

Mr Roy, who is also director of economic expects CPI inflation to rise further to 3.8 per cent, inching closer to RBI’s inflation target of 4 per cent, while WPI inflation may inch up to 3.4 per cent in September from 3.2 per cent in August, largely driven by higher oil prices.

According to official data, India’s retail inflation had swelled to 5month high of 3.36 per cent in August on costlier vegetables and fruits. Following the rise in inflation, Morgan Stanley said “it will mean that RBI will keep rates on hold”. think tank NIPFP, however, said the council will examine causes of slowdown. India’s economic growth slipped to a threeyear low of 5.7 per cent in the first quarter of the current fiscal.