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Factory output slows to 3.1 per cent, retail inflation rises to 4.48 per cent

Despite the festive season, consumer durables output was 2% lower than a year ago, while consumer non-durables was down 0.5%.

Published: 13th November 2021 02:50 AM  |   Last Updated: 13th November 2021 07:53 AM   |  A+A-

Inflation; growth

For representational purposes (Express Illustrations/Amit Bandre)

By Express News Service

NEW DELHI:  India’s industrial production growth slowed down to 3% in September, a seven-month low, on account of chip shortage, coal mining disruption, and normalisation of base effect, as per data from the National Statistical Office on Friday.

Manufacturing sector’s output surged 2.7% in September, mining output grew 8.6% and power generation 0.9%.

India’s industrial production, measured by the Index of Industrial Production (IIP), had grown by 1% in September 2020.

Despite the festive season, consumer durables output was 2% lower than a year ago, while consumer non-durables was down 0.5%.

Experts found it a bit disappointing.

“No doubt festival demand is finding reflection in the year-on-year growth but the consumption demand after Covid 1.0 & 2.0 still has not reached to the level that output could reach or surpass the pre-Covid period,” said Sunil Kumar Sinha, principal economist, India Ratings.

Aditi Nayar, chief economist, ICRA, said supply side issues in the auto sector are still a dampener.

“We expect the high base to keep the IIP growth lacklustre at under 2.5%” in October. Meanwhile retail inflation, measured by Consumer Price Index, rose marginally in October to 4.48% due to an uptick in food and fuel prices.



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