In­dia’s in­dus­trial out­put slumps amid slow­down in man­u­fac­tur­ing

Oman Daily Observer - - BUSINESS -

NEW DELHI: In­dia’s in­dus­trial out­put slumped to 0.5 per cent in Novem­ber amid a slow­down in auto and gar­ment man­u­fac­tur­ing, mak­ing Prime Min­is­ter Naren­dra Modi’s chal­lenge to boost in­vest­ment be­fore an elec­tion in the com­ing months seem tougher than ever.

An­nual in­dus­trial out­put growth in Novem­ber was far below a fore­cast of 4.1 per cent in a Reuters poll and an up­wardly re­vised 8.4 per cent year-on-year in­crease in Oc­to­ber, gov­ern­ment data re­leased on Fri­day showed.

The in­dus­trial out­put data se­ries is widely con­sid­ered as volatile but many econ­o­mists said the Novem­ber fig­ures were also af­fected by lesser num­ber of work­ing days in Novem­ber due to fes­ti­val.

“The sharp drop in in­dus­trial pro­duc­tion growth in Novem­ber is in large part linked to the shift in the tim­ing of the Di­wali hol­i­days last year,” Shi­lan Shah, In­dia econ­o­mist of Cap­i­tal Eco­nomics in Sin­ga­pore said. “Near-term prospects for in­dus­try re­main fairly up­beat.”

Modi, who is aim­ing for a sec­ond five year term in na­tional elec­tions which must be held by May, has pumped bil­lions of dol­lars of state funds into build­ing roads, ports and air­ports to sup­port eco­nomic growth and cre­ate jobs.

An em­ployee works in­side a gar­ment fac­tory of Ori­ent Craft Ltd in Gur­gaon on the out­skirts of New Delhi. — Reuters

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